THE COMMERCE Ministry is to launch an investigation into consumer complaints of overpriced gas sales around the island following the liberalisation of the market.
Gas prices before the island’s accession in May were set by the Commerce Ministry, with the last price set at £3.20.
But both the Commerce Ministry and the Consumers Association yesterday confirmed they had received calls from shoppers saying gas cylinders in certain supermarkets were now costing as much as £4.20.
Speaking to the Cyprus Mail yesterday, Consumer Association spokeswoman Egli Hadjipaschali urged Commerce Minister George Lillikas to intervene in the same way he had done with fuel prices and to threaten supermarkets that he would exercise his right to set prices in order to clamp down on over-pricing.
“Before the libearlisation of prices, the government imposed increases on liquid gas and the price went up to £3.20,” she said.
“Some grocers charged a little more because they were delivering the gas to customers at home, but after liberalisation, we’ve had calls from consumers who reported that they had purchased gas at a pound over the price set by the ministry.
Hadjipaschali said that the price hikes imposed on gas by grocers were unjustified due to the fact that a five per cent tax had been added for transport of gas when the island joined to the EU in May.
“A five per cent tax in the form of VAT was added on the delivery of the gas to grocers, and with the VAT the price went up to £3.36, but they are selling it for £4: that is too much even with liberalisation,” she said.
“We were expecting that the minister would intervene just like he did with the fuel because the price rise was way too high.”
The Director of Competition and Consumer Protection at the Commerce Ministry, Leontios Pericleous, yesterday told the Cyprus Mail that a study showed that the lowest price for gas in the market was £3.60 and the highest was £3.80.
“Both fuel companies and grocery stores should be careful because they probably failed to realise that gas falls into the fuel category and if the minister finds that there has been price-fixing, then he will intervene and set the prices,” he said.
“There was a case were the gas cylinder was sold at £4.20 and that is simply unacceptable, but the minister will examine the issue on his return to Cyprus.”
The director of fuel giant Petrolina, Akis Lefkaritis, yesterday defended the ministry’s probe, saying fuel companies had nothing to do with increased prices at supermarkets.
“We don’t make much on gas, the prices were set and most of the money goes to the supermarkets, not us,” he said.
“So if they are over-pricing then they should face the consequences, we barely cover our costs on the sale of our gas.”
Leontios Pericleous Ministry of Commerce
Akis Lefkaritis.
We are still the cheapest country in the EU.
