Nicosia, Cyprus. The consumers’ association on Monday called for the reduced fuel consumption tax rate due to take effect on Wednesday to be extended to heating oil. It said heating oil should not be excluded from the subsidy as prices continue to rise.
Call to include heating oil in the subsidy
The association said that with petrol and diesel set to be subject to a reduced tax rate, “there is no justification in any case for the exclusion from the subsidy” of heating oil. It noted the retail price of heating oil has risen by 32 cents per litre since the beginning of the month.
Further increases and seasonal consumption
The association said that “by the end of next week, there will be significant additional increases” in heating oil prices. It added that heating oil consumption “remains significant” in April, May, and June, which are the months when the reduced tax rate on other fuels will be applied.
It said heating oil use “continues until mid-May” in mountainous areas, and that average monthly consumption over the three-month period typically reaches 2,549 tonnes.
Government announcement on fuel taxes
President Nikos Christodoulides last week announced that the fuel consumption tax will be reduced by 8.33 cents per litre between April and June. He also said “green taxes” on fuel, which had been set to raise the retail price of fuel by nine cents per litre, will not be implemented.
The association noted that the subsidy currently applies only to petrol and diesel.
Do you think heating oil should be included in the reduced fuel consumption tax rate?