Christodoulides says government has spent over €1 billion to ease rising living costs
President Nikos Christodoulides said the government has invested more than €1 billion to address rising prices, as fuel costs remain high despite tax relief.
Nicosia, Cyprus. President Nikos Christodoulides said on Tuesday that the government has invested more than €1 billion to ease rising living costs. He was responding to a question about measures to address Greek Cypriots filling their vehicles at Turkish Cypriot petrol stations.
Government support and fiscal policy
Christodoulides said the spending was intended to address the impact of rising prices, particularly fuel costs, which he attributed to external rather than domestic factors.
He said the government’s “responsible fiscal policy” had given it the financial capacity to support the public.
“We are here, evaluating measures, data and prices on a daily basis and intervening, and I am pleased, I repeat, that we have the ability to intervene, whenever and wherever necessary,” he said.
Tax relief measures
The government last week announced a €70 million package aimed at easing living costs. The measures include reducing excise duty on heating oil from 7.4 cents to 2.1 cents per litre, the minimum permitted by the European Commission.
The fuel consumption tax rate also remains at the temporarily reduced level of 8.33 cents per litre. The reduction was introduced in 2023, and the government has regularly announced extensions.
Pump prices expected to rise
Despite the measures, petrol station owners’ association chairman Christodoulos Christodoulou warned on Monday that pump prices would continue to rise this week. Diesel prices exceeded €2 per litre last week.
He said the average diesel price was around €2.03 per litre, with prices ranging from €1.94 to €2.12. The average price of 95-octane petrol was €1.74 per litre, with prices ranging from €1.66 to €1.82.
Christodoulou said those prices were likely to increase because of high global oil prices.
Crude oil decline yet to reach consumers
Crude oil peaked at just over $106 per barrel on September 15. By midday on Tuesday, the price stood at $87 and was gradually declining.
However, lengthy supply chains mean it will take weeks for the reduction to be passed on to consumers.
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