Paschalides and petrol retailers kiss and make up

WARRING sides in the petrol-price dispute yesterday  called a truce as the commerce minister and petrol station owners “put all their cards on the table”, they said.

After more than half of station owners were found to have increased the price of their old stock before new – more expensive – loads were in pumps, there has been a war of words with Commerce Minister Antonis Paschalides.

The dispute came to a head on Wednesday with the station owners going so far as to threaten a strike. First however they said they would meet Paschalides yesterday.

However after the meeting, an apparently contrite Paschalides announced that the two sides had decided to create a technical committee, which will come up with a formula to determine the way in which fuel prices can increase or decrease, in accordance with global trends.

Petrol station owners blame the oil companies for the price hikes. They in turn blame the unrest in the Arab world, and warn that this could just be the beginning of a series of fuel price increases.

Speaking after yesterday’s meeting, Paschalides said the two sides had put “all the cards on the table”, and decided to “turn a new page”.

“We think the suggestion to create a technical committee that will deal, practically and determinedly in the frame of competition and free economy, the way in which the prices can be increased or reduced,” he said.

The minister said everyone’s goal should be to promote healthy competition, a free economy and “of course, consumer protection”.

“Our ministry definitely puts the consumer above all, but at the same time we also understand the problems petrol station owners are facing as small and medium-sized enterprises,” said Paschalides.

Probed by reporters over whether this formula aimed at ending the phenomenon of petrol station owners increasing their prices without actually receiving new stock, Paschalides said: “We said we turned a new leaf; I think that this answers your question.”

The minister – who prior to the meeting could barely contain his anger – was dismissive yesterday when asked what he planned to do with petrol station owners who had been caught profiteering. He said he didn’t want to comment on “hypothetical scenarios”.

The president of the Pancyprian Petrol Station Owners’ Association, Stefanos Stefanou, said the special committee would include a commerce ministry spokesman, a spokesman for the petrol stations and a spokesman for the oil companies.

“This committee will come up with a formula to protect the best interests of the consumer, which will be used in both increases and reductions, so that the petrol station owner isn’t blamed for increasing prices too soon or reducing them too late,” said Stefanou.

Earlier in the day, Stefanou told a CyBC radio show that there would be an two-cent per litre increase in fuel prices, adding that this was not down to the petrol stations but oil importing companies.