Nicosia, Cyprus. Cyprus is expected to face further fuel price increases in the coming weeks, although supplies remain sufficient for around 90 days, petrol station association president Savvas Prokopiou said on Friday.
Expected increases and supply outlook
Prokopiou said prices could rise by another five to six cents per litre unless conditions change dramatically. He described the possibility of a shortage as remote, stressing that Cyprus has historically maintained ample reserves and that any disruption would likely affect many countries, not only the island.
Coordination and recent pricing changes
Prokopiou said fuel price management is being coordinated with the consumer protection service and importing companies. He said that in a period of 13 days, six increases were imposed on gas station operators by fuel importing companies.
Calls for subsidies and comments on VAT revenues
Prokopiou called for government intervention through fuel subsidies similar to measures implemented in 2022. He said that when fuel prices rise, VAT revenues also increase, estimating that a 50-cent rise in fuel prices generates around 8.5 to 9 cents more in VAT per litre, and that the state should partially subsidise fuel.
Price ceiling skepticism and industry response
Prokopiou expressed scepticism about the effectiveness of a price ceiling on fuel, saying that a previous ceiling was imposed on the retail price only and did not last even 24 hours. He said that for such a measure to succeed it would need to start at wholesale level. He also rejected claims of profiteering, saying gas station operators follow policies based on wholesale costs and that any irregularities have been brief and isolated.
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