Keravnos says government aims to contain fuel prices, not deliver sharp cuts

Nicosia, Cyprus. Finance Minister Makis Keravnos said on Tuesday that the government’s immediate priority was to keep fuel prices under control rather than secure substantial reductions.

Energy pressures limit scope for reductions

Addressing reporters during an event celebrating European Statistics Day, Keravnos discussed the latest cost-of-living relief package and whether further government action was planned.

Asked if continuing energy price increases had already cancelled out the benefits of the support, he said substantial price falls should not be expected in the current circumstances.

Keravnos described Cyprus as being amid four wars, without identifying them, and said these had caused “a huge global energy crisis”. The aim, he added, should be to “contain prices and not expect sharp reductions”.

Cyprus seeks room for further tax cuts

The minister said the government had reduced tax rates to the lowest levels permitted by EU rules and requested an exemption allowing additional cuts.

Obtaining that exemption was difficult, he said, referring to recent talks during a summit attended by EU leaders. Cyprus would bring the matter up again when EU finance ministers meet in approximately two weeks, he added.

Keravnos called for flexibility in applying the EU’s fiscal governance framework, arguing that a rigid policy could not adequately account for prevailing conditions, particularly those being experienced now.

Initial assessment of support measures

The authorities were monitoring the relief measures already announced, Keravnos said. He added that an initial Consumer Protection Service assessment indicated that prices for some essential goods had fallen by 5 per cent.