Today’s increases in fuel prices are putting an additional strain on drivers’ wallets, while the debate continues over how prices are set, whether price controls are effective, and what measures can be taken to limit costs for consumers. Gas station owners and lawmakers are bringing different aspects of the problem to the table, ranging from profit margins and competition to fuel taxation.
Speaking on the Alpha Kalimera program, Christodoulos Christodoulou, a representative of gas station owners, noted that gasoline prices are rising by about three cents per liter. In contrast, one company reported a decrease of about three cents for diesel fuel, which is expected to be reflected at its stations within the next one to two days. “We have seen increases in gasoline prices, about 3 cents per liter,” he said, though he avoided attributing the decrease in diesel prices to any specific reason.
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Mr. Christodoulou also responded to allegations that some gas stations did not fully pass on to consumers the 8.33-cent reduction resulting from the tax measure. “I challenge them to come forward and tell us specifically which gas stations have not lowered their prices and which have reduced them by the full 8.33 cents,” he said. As he explained, the market is free, and a gas station can readjust its prices, while arguing that higher prices in certain areas may be related to a business’s viability and not necessarily to profiteering.
At the same time, he sounded the alarm regarding the sector’s viability, noting that the issue will be discussed at an upcoming meeting of gas station owners. “We have very serious issues to discuss, and one of them is the viability of gas stations and whether we will be able to keep them open. We’re operating at a loss, we can’t buy fuel, and we’ll have to make some tough decisions,” he said. According to him, the gross profit margin for a significant portion of gas station owners is around 2.8%, noting specifically that “if you sell 100 euros worth of diesel, we’ll make 2.80 euros gross.”
At the same time, the discussion has expanded to include how the market is regulated as a whole. MPs Andreas Pasiourtides of AKEL and Giorgos Pamborides of DISY raised the issue on the program of greater transparency in price setting, more effective controls, and strengthening consumer confidence in the relevant authorities.
Andreas Pasiourtides noted that during the Energy Committee meeting, he requested a detailed breakdown of the final price, from the base price of the fuel to the excise tax, VAT, and other charges. “If a government agency cannot, in simple terms, explain what the data is and how the result is calculated, people will always have the impression that they are being ripped off,” he said, calling for greater transparency in both pricing and profit margins.
For his part, George Pamporidis emphasized that “the free market exists not so that some can make exorbitant profits, but so that prices are driven down,” stressing that regulatory authorities must ensure that the market is not manipulated by companies with a dominant position. “We must restore consumers’ sense of security in Cyprus, so they know that the relevant government agency has the right tools to determine whether price gouging is taking place or not,” he noted.
Regarding taxation, the two members of parliament argued that there is room for additional measures. Mr. Pasiourtides referred, among other things, to targeted support for families, heating allowances, and a possible reduction in vehicle registration fees, while proposing that an exemption be considered so that VAT is not levied on the excise tax. Mr. Pamporidis advocated for greater tax relief, stating emphatically that “The government’s role is not to do citizens a favor by giving out benefits. The government’s role is to reduce the burden on citizens.”
