Recent Surge in Fuel Prices Post Tax Measure Reinstatement
In the wake of the Cypriot government’s decision to end the reduced tax measure on fuel, consumers have been facing a noticeable increase in petrol and diesel costs. The Consumer Protection Service (CPS) has reported that the average fuel prices have risen by 4.5 cents per litre for petrol, 1.3 cents for diesel, and 0.4 cents for heating oil.
This uptick follows the April 1st cessation of the tax relief, with gasoline prices surging by 8.3 cents per litre and heating oil by 6.3 cents since the start of the month. As a result, over the first 17 days of April, consumers have been shelling out an additional 14.7 cents per litre for petrol and 9.7 cents more for diesel, while heating oil has gone up by 6.4 cents per litre.
As it stands, the average price for petrol has reached €1.558 per litre, diesel at €1.605, and heating oil at €1.132. Prior to the tax measure’s rollback, the average prices stood at €1.411 for petrol, €1.508 for diesel, and €1.068 for heating oil.
CPS director Constantinos Karageorgis commented on the situation, “There has been an upward trend in fuel prices recently, something that is expected to be reflected in the Fuel Price Observatory. We are experiencing rising price across the board, and we cannot hide that.”
The recent price hikes coincided with geopolitical tensions following Iran’s attack on Israel last Saturday. With risks of supply disruptions in the Middle East escalating, there is widespread concern over potential further increases in fuel prices and transportation costs. Despite these events, the price of Brent crude oil has remained under $90 per barrel in recent days.
Karageorgis clarified that the current rise in fuel costs is not directly linked to the recent strike by Iran on Israel. “International markets did not yet panic, and oil prices globally have remained at the same levels. That said, no one knows how the situation will evolve,” he stated, highlighting the unpredictable nature of global fuel markets amidst ongoing international conflicts.
