CONSUMERS will be getting – at least temporarily – a breather as the price of fuel drops, just as winter gets ready to kick in.
The break came on Saturday, when parliament approved a tax reduction of three cents on heating oil; that, coupled with a 2.5 to 3 cent fall in market prices due to a drop in crude oil prices, would alleviate people’s pockets by almost six cents per litre.
The move came amid mounting pressure from mountain communities that they could not cope with the soaring fuel prices of the past couple of years, accusing the government that they were being left out in the cold – literally.
For its part, the opposition was quick to jump on the bandwagon and take up the communities’ banner, in a bid to portray the administration as anti-welfare.
To prevent cheating, it has been decided that heating oil will be coloured yellow to distinguish it from vehicle fuel and agricultural fuel. It will also contain tracer elements, and will be available in this form as of today.
Moreover, petrol, kerosene and diesel prices were expected to drop starting yesterday, after oil companies received the latest, cheaper, shipments in November.
Outlets were set to reduce market prices accordingly, with reports quoting the following figures: 46.9 cents per litre for 95 Octane petrol, 47.8 for 98 Octane petrol, 42.3 for heating fuel, and 43.8 for kerosene and diesel.
All four major oil companies on the island –Lukoil, Hellenic Petroleum (EKO), Petrolina and Exxon-Mobil – have indicated imminent changes to their pricelist.
Despite being a welcome development for the man or woman on the street, political controversy was not to be avoided. While main opposition party DISY charged that greater reductions could have been made with no detriment to state coffers – the government begs to differ, insisting it is cash-strapped – the Greens yesterday lashed out at the administration, accusing it of a slapdash and quick-fix attitude to solving problems.
Greens chairman George Perdikis suggested the government had cunningly fast-tracked the bill through parliament on Saturday morning, and was able to get away with it because the media’s attention was necessarily turned to the visit by Greek Premier Costas Karamanlis.
He went on to describe the bill as “patchwork”, adding that the government lacked a comprehensive or coherent energy policy. Moreover, the new arrangements did nothing to alleviate lower-income households, argued the Greens.
On a more practical level, the Petrol Station Operators Association has warned that 80 per cent of stations were not equipped to transport the different types (colours) of fuel proposed by the government. The association also said some of its members might refuse to sell coloured fuel because transport costs of acquiring new tankers and drivers were too high.
For their part, mountain dwellers were unimpressed with the new arrangement, insisting the cost reduction was unsatisfactory; they also complained the government had only acted in the nick of time, just before the cold bites in.
Weather forecasts see a drop in temperatures this week, starting today.
