The price of petrol is set to rise by 8.32 cents per litre and heating fuel by 6.38 cents, with petrol station owners saying they have no choice but to add the additional cost.
The price increases will take effect from midnight on June 30 after the cabinet decided on Wednesday that the reduced rates of tax on motor and heating fuels will be scrapped by the end of the month.
The higher cost of fuel raised concerns among petrol station owners that the development will lead more people to fill up with cheaper petrol in the north, with the sector protesting and pressing the government to prevent that route.
Savvas Procopiou, head of the petrol station owners’ association, told the media on Thursday that the reinstatement of the tax casts a gloomy outlook for the sector.
“The reinstatement of the tax will definitely bring back a negative sentiment, but unfortunately we cannot do anything about it,” he said.
Procopiou added that the increase will hit their pocket, too, saying that their cost of procuring petrol will also go up.
He further said that since every household has a budget for their weekly or monthly fuel purchases then this will lead to a decline in overall litres purchased.
In turn, he said, that will reduce the income for petrol station owners.
On a positive note, Procopiou said that in his view an increase in the price of petrol on the international market is unlikely and that prices in the sector have stabilised.
Earlier this week, drivers blocdked roads near crossing points in Nicosiav with their petrol tankers to press the government to prevent what the sector says is the illegal importation of fuel from the north.
President Nikos Christodoulides said all checks allowed by the Green Line regulations will take place.
“I want to be completely honest. Indeed there is a problem,” he said.
“I am very aware of the concerns, there is also the issue of unfair competition especially when it is used for commercial purposes. I understand when it is for private use, but when it is for commercial purposes it is something that is not allowed.”
The government has made clear that it is not illegal for Greek Cypriots to fill their tanks in the north, while they can also bring 10 litres in a jerry can.
However, some have been transporting larger amounts of fuel in drums or in hidden tanks installed underneath vehicles, which they are then believed to sell on.
