MOTORISTS and consumers beware. As of yesterday, the price of petrol, diesel and heating oil has risen again.
Pambinos Charalambous, President of the Petrol Station Owners Association yesterday told the Mail that petrol has risen by 0.6 cents, euro diesel by one cent and heating fuel by two cents.
“At the pumps, unleaded 95 and euro diesel now cost 54.8 cents a litre while unleaded 98 is 58.4 cents a litre. Heating fuel has risen to 50.6 cents per litre.”
Yesterday, one petrol company had already passed on the increase to drivers, with the others expected to follow suit.
The Cyprus Organisation for the Management of Oil Reserves (KODAP) said that in real terms, this will equate to an extra ten cents for every £20 purchase but the knock-on effects as they relate to food and distribution prices are yet to be calculated.
The non-profit organisation, was set up to maintain and monitor the country’s strategic oil reserves, part of Cyprus’ obligations as an EU member. It was established following the closure of the refinery at Larnaca.
Charalambous attributed the rises to “the rising price of oil worldwide,” saying nobody knew where the situation would end.
He also warned that from October 1, there will be a further tax increase of 0.3 cents per litre which will apply to all fuel.
“We are never happy when prices go up as the consumer is affected, but we are still the cheapest country in Europe to buy petrol in,” he said.
Commerce Minister Antonis Michaelides described the hikes as justified, but warned that he would not hesitate to intervene and set the maximum price himself for 40 days, as the law allows, if unjustifiable prices are seen.
He added that that was not the case so far, but said the Ministry will be continuously monitoring prices in the market.
He echoed Charalambous, pointing out that despite the increases, fuel prices in Cyprus, apart from heating oil, were still among the lowest in Europe.
Regarding heating oil, he stated the price was higher than the EU average, but said that people only needed to use it for a fraction of the year, compared with other fuels.
He also appeased worries over profiteering during the countdown to the euro conversion, acknowledging that, “it’s a sensitive subject.”
Lefteris Christoforou, Vice President of opposition DISY, hit out at the government though, saying: “When it decides to increase taxation, the government uses EU regulations as an excuse, but when it actually comes to reducing taxes, suddenly develops amnesia.”
He added that nobody was questioning the fact that increases were due to the worldwide spike in oil prices, but said that the government is solely responsible for the situation regarding heating fuel.
Regarding petrol, Christoforou stated: “From the price given at the pumps, half of that figure will go into the pockets of the government and I feel they should have taken measures to protect the Cypriot taxpayer from this worldwide crisis.
The party has in the past called for the abolition of road tax to help consumers deal with ever increasing fuel bills.
World oil prices eased Friday after New York crude hit a record $84.10 per barrel Thursday on fears a storm could threaten energy facilities in the US Gulf of Mexico.
London Brent had also surged Thursday to an all-time record of $79.28 per barrel amid supply concerns in the United States, a key energy consumer, ahead of peak winter demand for heating fuel, analysts said.
OPECs ‘basket’ price of crude oil, based on production in 12 different countries, rose to a record $75.61 a barrel on Wednesday, the cartel revealed on Thursday.
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