Cyprus Mail

Consumers association calls for return of fuel subsidy

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The government must reinstate the fuel subsidy for two months as petrol prices are up 18 cents per litre from the time the government scrapped it back on July 1, the consumers association said.

Their statement on Tuesday is a swift change of heart from the beginning of the summer when the association agreed with the government that the subsidy could be scrapped.

But they said that the situation since then has changed significantly, and it is set to get worse – with more petrol price rises likely in the pipeline.

The association stressed that today’s prices are up 10 cents per litres compared to when the government first brought in the fuel subsidy, which was back in early March 2022.

At the time, the government brought in relief measures as inflation and an increase in fuel prices battered households grappling with the cost of living – a situation which has proved sticky.

In making its case for bringing back the fuel subsidy, the consumers association said that should the measure return for two months it will not prove overly burdensome for the state coffers.

It claimed that the subsidy could be covered from the VAT on fuel levied from July 1 until today, with whatever other taxes it raises from fuel by the end of the year.

The association further pointed to statements from the finance ministry as saying that the state’s finances are in order.


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