The Cyprus Consumers Union has called on the public to support a series of proposed measures aimed at tackling rising fuel and food prices, warning that households and small businesses are under increasing financial pressure.

In an announcement, the union outlined the need for immediate action and put forward a set of ten recommendations, including reducing VAT on electricity to 5 per cent and abolishing it entirely on emissions. It also called for measures to prevent increases in lending interest rates, as well as their suspension, alongside a halt to extraordinary taxation imposed on households and small enterprises where applicable.

The union further reiterated its call for a tiered subsidy scheme to offset rising electricity costs for as long as prices remain elevated due to the ongoing war and energy crisis. It also urged a significant reduction in excise duties where imposed and the elimination of what it described as double taxation on fuel.

Among its proposals are targeted subsidies for fuel and essential goods, as well as the taxation of excess profits by renewable energy companies and fuel importers. It also recommended the introduction of a cap on profit margins for basic products at both wholesale and retail levels.

At the same time, the union stressed the need for stricter and more frequent market inspections “to enhance transparency and prevent profiteering in the way fuel costs are calculated”.

It also called for profiteering to be criminalised by law and for enforcement mechanisms to be strengthened to combat such practices effectively.

According to the union, increases in fuel prices began following a drone incident in Akrotiri and have continued since, drawing comparisons with the spike observed after the outbreak of the war in Ukraine.

However, it noted that similar trends have been observed for years in both fuel and food prices. It pointed out that after the start of the war in Ukraine, the cost of living surged sharply without any meaningful de-escalation since, while authorities failed to respond adequately.

The union added that even initiatives such as the so-called “e-basket” were implemented without substantial input from retailers, according to traders.

It concluded by questioning whether it still makes sense to speculate on when and by how much prices will rise, given what it described as a persistent upward trend.

Highlighting a lack of trust in political or technocratic interventions, the union urged the government to proceed with the immediate implementation of the proposed measures as a minimum level of support for consumers.