The imposition of price increases in fuel is just a matter of time after the agreement between the Commerce Ministry and the fuel companies’ representatives for the abolition of the PNBS. The good news for the Cypriot consumers is that the price hikes have been dissociated by the deficit of the PNBD and will concern the costs that burden the Companies due to the dramatic increase in crude oil for the past 3 months.

To avoid the phenomenon of profiteering, Commerce Minister, Giorgos Lillikas said that the government is to decide when it will abolish the PNBS and will impose new increases in fuel.

The formula…

The Minister of Commerce, the fuel companies and the Refinery agreed on the formula on which the Companies will be based to gain back the losses that have been accumulated from the price hike in fuel worldwide. The companies accepted that the losses will be covered in such a way that it will be imperceptible for the Cyprus economy or consumers.

It is noted that that the government and the companies must reach an agreement within the period of two months on the losses that have been accumulated due to the different estimates made by the civil services and the companies.

GAP

According to StockWatch sources, the government and the fuel companies disagree on the PNBS deficit. Although Commerce Ministry technocrats believe that the deficit stands at £7 million, the companies have calculated that losses reach £9 – 12 million.

It is worth noting that after the future agreement between the government and the companies on the PNBS deficit, new additional price hikes are likely to take place to cover the said deficit, a representative told StockWatch on Thursday.