“The latest price hikes on fuel are absolutely justified”, Commerce Minister, Antonis Michaelides stated on Friday. According to Mr. Michaelides, any increase in the price of fuel will be attributable to the increase in the price of crude oil worldwide. “Cyprus is not an oil producing country and does not fix the prices. Cyprus imports oil and domestic prices depend on the international”, he said.

Invited to comment whether the government intends to cut the tax on fuel, the Minister was negative. “This tax is very low in Cyprus. If we cut it further, we will be punished by the EU. Only the tax on heating oil exceeds the EU average. The government’s revenues, however, from the heating oil tax are less than the low tax on oil. This must be taken seriously into account by those who claim that the government makes illicit profits from the heating oil tax”, he stressed.

DISY

Meanwhile, DISY Vice President, Lefteris Christoforou urged the government to relieve the citizens, by abolishing the car license, reducing the consumer tax on heating oil to 1.3 cents per litre and taking measures in favour of the big professional groups that are hit by taxes and price hikes.

According to Mr. Christoforou, 40% of the total price of oil is taxes collected by the state. “The VAT is imposed on the consumer tax and total taxation on fuel has been shot. The state imposes double and triple taxes on oil. Of the 60 cents per litre, 27 cents per litre are taxes”, he concluded.