Driving in Cyprus

THE COMMERCE Ministry plans to put fuel prices online very soon so consumers can choose the cheapest prices on the market, said government spokesman Stefanos Stefanou yesterday.

“Very soon, the Commerce Ministry’s Competition and Consumer Protection Service will go online to announce the cheapest fuel prices at petrol stations,” he said.

The ministry conducted a price study last week, though failed to release its findings since many petrol stations were closed and so had not yet reduced prices based on shifts in market prices. Ministry officials are expected to complete a second price study today, as most petrol stations are now open again after the holidays, which they will likely release to the public.

Fuel prices will go online – Cyprus Mail.

NICOSIA – Petrol prices went down by as much as 2.5 cent per litre Thursday following the arrival of cheaper shipments.
Petrolina went ahead with the price cuts and the other  three  companies, EKO  Exxon Mobil and Lukoil, are expected to follow suit.
The new price of 95 octane is now between €1.058 and €1.060 compared to €1.085.
The price of 98 octane ranges between €1.089 and €1.091 compared to € 1.114 and€1.116 which was its price until Wednesday.
The price of diesel is now €1.057 and €1.060 compared to €1.072 and €1.075.
EKO is expected to proceed with cuts of 1 cent.

Cheaper petrol.

FUEL PRICES went up yesterday by 1.7 cents a litre and diesel by 2.0 cents per litre.

Following increases by EKO and Petrolina, which increased their prices on Wednesday, Exxon and Lukoil followed suit on Thursday.

With the new increases, 95 octane petrol was yesterday being sold for between €1.081 and €1.084 a litre, while diesel was between €1.068 and €1.072 a litre.

Oil companies yesterday claimed the increases were as result of global oil price hikes, which have pushed up the price of their new supplies

THE recent cuts in fuel prices at the pump appear to be reasonable, Commerce Minister Antonis Paschalides said yesterday.

Late last week oil companies announced price reductions of two cents per litre for petrol and one cent per litre for diesel. The Commerce Ministry attributed the price-cut to an improved exchange rate of the euro against the US dollar, but said it would conduct a cursory probe of the market to determine whether under the circumstances companies could have afforded to drop their prices even further.

“The price cuts are more or less within [reasonable] boundaries,” Paschalides said yesterday.

Today, the ministry will follow up by publishing the latest update to its routine retail price-watch.

The previous update showed significant discrepancies in prices charged in the various districts, with some petrol stations in Limassol charging a full four cents per litre more than elsewhere.

Paschalides’ remark that prices in Limassol – and to a lesser extent Paphos – were unjustifiably high drew an angry response from the Petrol-station Owners Association. They say they are operating in a free market, adding that prices are always displayed at the entrance to petrol stations, so motorists have the right to choose where to buy fuel.

Yesterday, a group of petrol station owners – not representing the association – sent Paschalides a letter asking him to explain whether, at the end of the day, the fuel market in Cyprus is free or controlled.

Their implication was that the minister is trying to regulate prices in breach of a law passed in 2004 liberalising the sale of fuels.

Paschalides replied that whereas the market is free, the law does allow the ministry some degree of intervention in determining wholesale and retail prices, such as setting price caps.

He said that transportation, storage and electricity costs were more or less the same for all petrol stations across the island, and went on to wonder why Limassol should be different from other districts.

Paschalides also dismissed the accusation that he was “out to get” certain petrol station owners:

“These are the shenanigans of certain people…the minister does not determine prices, nor is he out to get anyone, except those who profiteer at the expense of the consumer,” he said.

Last month parliament passed a law enabling the Commerce Minister to impose a cap on both wholesale and retail prices of fuel and liquid gas for up to 45 days.

The new law was introduced after a showdown with petrol stations last February when Paschalides imposed an eight-day cap on the retail price of petrol and diesel due to a widespread perception that the pump price was artificially high.

The move prompted most petrol stations across the island to shut shop in protest.

via Minister approves of fuel price cuts – Cyprus Mail.

THE OIL companies have cut the pump-price of petrol by two cents per litre and diesel by one cent per litre, but prices in Limassol, are unjustifiably higher than elsewhere, Commerce Minister Antonis Paschalides said yesterday.

Paschalides attributed the price-cut to an improved exchange rate of the euro against the US dollar.

However, Paschalides said that the results of studies commissioned by the Ministry show that pump prices in Limassol and, to a lesser extent, Paphos are noticeably higher than in other towns.

While acknowledging that no-one could expect the same prices to be charged everywhere, the minister insisted that the prices being charged by some petrol stations in Limassol – in some cases a full four cents per litre more than elsewhere – could not be justified.

Petrol-station Owners Association President Stephanos Stephanou responded that his members are operating in a free market, adding that prices are always displayed at the entrance to petrol stations, so motorists have the right to choose where to buy fuel.

Stephanou also suggested that the price of fuel was something that the media and some politicians liked to talk about when it suited them.

Referring to Thursday’s announcement of private plans to build a terminal at Vassiliko (Larnaca) for importing and distributing oil products – which may also involve selling to the local market – Energy Department Head Solon Kasinis said that this could break the domination of the local market by a few large wholesale suppliers.

“The opportunity must be given to other players to enter the local market in oil products, so that we can escape the oligopoly we are facing at the moment, and thus avoid confrontations over retail prices”, he said.

via Fuel prices cut but Limassol and Paphos still paying over the odds – Cyprus Mail.

NICOSIA – Life in Cyprus just became a little more expensive after the House of Representatives approved Thursday evening a tax hike at the pumps.
This adds an extra 6 to 8.5 cents per litre to petrol and diesel when motorists fill up their tank as of Friday morning. Diesel has gone up 8.5 cents in tax and petrol six cents.
The government was obliged to push up the tax under EU regulations but it’s a welcome source of revenue to fill empty state coffers to the tune of €65 million per year.
The move is part of a three-pronged tax invasion which could see corporate tax increase by one percent and a higher levy imposed on large property holdings.

Tax hike at pumps.

IRREGULARITIES in the market can’t be solved with price ceilings, patch-up measures and disposable solutions, the President of the Committee for the Protection of Competition (CPC) said yesterday.

Costakis Christoforou was commenting on a law that was passed on Thursday enabling the Commerce Minister to set a ceiling on the wholesale and retail price of fuel.

“The dysfunctions of a market aren’t resolved with ceilings,” said Christoforou. “The weaknesses are handled with corrective measures; measures of political, structural and corrective policy.”

He said by ordering a ceiling, the government is effectively freezing the problem without dealing with it and it arises at a later date.

“When a market is an oligopoly, this determines a specific business behaviour, which must be examined by those who have a duty to examine it,” said Christoforou. “The market is dysfunctional; it needs to open, new players need to enter the market, lift today’s restrictions to enter the market,” said Christoforou.

Until today, he added, nobody has requested the opinion of the CPC on the matter. “If the new law complies with European justice will be seen as things develop.”

CPC: Fuel price caps can’t solve market irregularities – Cyprus Mail.

THE HOUSE of Representatives yesterday unanimously passed a bill enabling the Commerce Minister to impose a cap on both wholesale and retail prices of fuel and liquid gas for up to 45 days.

The new law was fast-tracked through parliament in response to the almost farcical turn of events last February, when Commerce and Tourism Minister Antonis Paschalides imposed an eight-day cap on the retail price of petrol and diesel, prompted by a widespread perception that the pump price was artificially high.

This resulted in most petrol stations being closed down in protest, with long queues of cars bringing traffic to a halt at those few stations still open, and heated exchanges between exasperated motorists. Motorists in Paphos district were hit especially hard, with many people left stranded in their homes through lack of fuel.

One major gap in the previous law was that oil companies selling directly to the consumer did not comply with the price cap, as they were not obliged to. After loud and insistent protest by petrol station operators, it also became clear that the real problem was the wholesale price set by the importers rather than the retail mark-up at the pump.

Another lesson learned last February was that that price caps do not in fact contradict EU law on free competition, provided that certain conditions are met regarding the temporary regulation of the price of essential goods.

Read more – House agrees fuel prices cap – Cyprus Mail.

A BILL giving the Commerce Ministry the right to set a ceiling on the wholesale and retail price of fuel will be submitted to the plenum tomorrow.

“The bill has been unanimously approved to be sent to the Plenum,” the Chairman of the House Commerce Committee, DISY’s Lefteris Christoforou said yesterday.

He added that his party would be submitting an amendment during the vote, according to which the Ministry will have to consult petrol companies and stations before setting the ceiling.

All MPs said they were in favour of the bill but DIKO, EDEK and the Green Party reserved comment on DISY’s amendment until it had been discussed at a party level.

“It is clear that we need immediate regulations that will allow the minister – under clear circumstances – to set a ceiling on the wholesale and retail price of oil,” said the Green Party’s George Perdikis, calling for similar regulations to be launched for other basic products.

AKEL’s Yiannakis Gavriel, however, accused DISY of being populists. “Insisting on submitting an amendment that will restrict the Commerce Minister from setting a ceiling by forcing him to consult with the companies and stations deducts from his powers,” said Gavriel.

Fuel ceiling going to plenum – Cyprus Mail.

Nicosia:  a sitting of the House will refer a bill to grant the right of the Minister of Commerce to issue a decree determining the cap on retail prices of fuels. The Trade Commission will make minor changes and send the bill to the House of Parliament.

He added that the bill would let the state regulate the market if a disruption occurs or any form of price speculation to the detriment of consumers.

There will be established an observatory of retail fuel prices, within the Commerce Department.

Already, the Ministry record the prices of fuel.  The observatory will cover almost all stations operating all over Cyprus. After assembling the data the ministry will announce which stations are more expensive and those which are cheaper.

It has been announced by the President of the Association of fuel resellers, Stefanos Stefanou that a number of operators will decrease the price of fuel.  The decrease for 95 octane unleaded petrol will be 2.5 cents and 98 octane unleaded 0.5 cents.

Green light for a cap on the wholesale selling price of the fuel.

COMMERCE Minister Antonis Pachalides has urged oil companies to cut the price of petrol at the pump after being handed a report documenting falling global fuel prices.
“According to the report I have just received, a decrease of up to 2.5 cents per litre for 95 Octane, the most common type of petrol, would be completely justified,” Paschalides said.
Contacts were already underway with oil companies, and Paschalides said he was ‘confident’ that they would respond to the call.
Pachalides was choosing his words carefully, perhaps wary of challenging oil companies after a standoff last April when petrol stations across the island shut shop in response to a government-imposed price cap.
The closure sparked a mad rush for fuel until Paschalides relented and cancelled the cap.
The minister said yesterday that if the global downward trend in fuel prices continued, there could soon follow further – and larger – decreases in the prices of other fuel types.
“We shall be monitoring the situation closely, and advising the interested parties [the oil companies] to act accordingly,” Paschalides added.
“We expect them to announce a new price list for Octane 95 today [yesterday] or tomorrow,” he said.
Reports yesterday said that Petrolina headquarters had instructed petrol stations to cut Octane 95 by up to 2.5 cents today, and it remained to be seen whether the other companies would follow suit.
According to the Commerce Ministry’s latest retail pricewatch, unleaded 95 petrol ranged from 1.019 to 1.057 cents a litre; unleaded 98 from 1.039 to 1.083 cents a litre; diesel from 0.959 to 1.019 cents a litre; heating oil from 0.745 to 0.820 cents a litre; and kerosene from 0.649 to 0.818 cents a litre.
The price watch is published and updated on the Commerce Ministry’s website, at www.mcit.gov.cy. For information on fuel prices, or to lodge a complaint, consumers may also reach the ministry’s Competition and Consumer Protection Agency by dialling 1429

Paschalides ‘time to cut petrol prices’ – Cyprus Mail.

FUEL TAXES will increase by almost 10 per cent by June as part of Cyprus’ obligations to the EU, with no further margin for delay, ministers of finance and commerce announced yesterday.

Cyprus had managed to achieve over two years’ postponement of the measure but yesterday it was made clear that there could be no further delay.

There will be an average 10 per cent increase on the total price of fuel, with around seven cents per litre on unleaded petrol and nine cents per litre on diesel.

However, Paschalides insisted Cyprus would still remain one of the cheapest EU states when it comes to consumption tax on fuel.

No more delays: fuel tax to rise by June – Cyprus Mail.

EKO yesterday joined Exxon Mobil which increased the wholesale price at which it sells fuel.  Lukoil and Petrolina are expected to follow suit next week.

The price at the pump does, for the time being, remain the same.  Market analysts anticipate an increase in the retail price of petrol, resulting from the increase in wholesale prices, should the increase in international prices of crude oil continue over the coming weeks.  This would be in addition to the increase in the price of fuel at the pump of 5-7 cents due to the tax increase on fuels which the Finance Ministry has indicated it will be moving forward with.

EKO increased the wholesale price of Unleaded 95 by 1.7 cents per litre, of Unleaded 98 by 0.6 cents and of diesel by 0.9 cents.

Fuel wholesale prices increase – Cyprus Mail.

THE CHEAPEST petrol in Cyprus at the moment is to be found in Larnaca and the most expensive is in Limassol while diesel is also cheapest in Larnaca and most expensive in Paphos, according to the Commerce Ministry’s ‘name and shame’ list released yesterday.

In Larnaca petrol 95 costs €0998 while in Limassol it is €1.022. Petrol 98 costs €0.999 in Larnaca and €1.058 in Limassol. Diesel will set you back €0.893 in Larnaca and €0.969 in Paphos.

The Ministry is hoping that by alerting motorists to the cheapest and most expensive stations, motorists can make a conscious effort to avoid the most expensive, thereby inducing those stations to bring their prices down to normal levels.

“The aim is the active involvement of users themselves, to try, as much as possible, to bring about the favourable operation of the market for consumers, by selecting and rewarding the cheaper service operators and excluding the most expensive,” read a statement released by the Ministry. “Consumers can with good consumer behaviour help maintain prices at levels justified,” it added.

NICOSIA

Cheapest 95: Charalambous Mazoutis EKO station Engomi and Takis Meyalemos ESSO in Kokkinotrimithia – €0.999.

Most expensive 95:  EKO stations Aglandjia, Dasoupoli, Akropoli, Kokkinotrimithia, Astromeritis, Strovolos, Nisou, Kornos, Deftera, Lakatameia, Pera Xorio, Agia Barbara, Latsia, and downtown Nicosia – €1.012.

Cheapest 98: NAN Pallouriotissa and Antonis Savvas, EKO in Pallouriotissa – €1.039.

Most expensive 98: P&C Chrysanthou Enterprises Ltd EKO station in Strovolos – €1.047.

Cheapest diesel: Nikos Kellenos Enterprises Ltd ESSO Dali – €0.930

Most expensive diesel: Neofitos Tsiamanes Ltd EKO Deftera €0.938.

LIMASSOL

Cheapest 95: Kristis Asmenos Petrolina – €1.007

Most expensive 95: Eleftherios Eleftheria and Savvas Prokopiou EKO – €1.022.

Cheapest 98: Kristis Asmenos Petrolina and Charalampous Fellas Lukoil  -  €1.039.

Most expensive 98: Eleftherios Eleftheria and Savvas Prokopiou EKO –  €1.058.

Cheapest diesel: Kristis Asmenos Petrolina –  €0.932.

Most expensive diesel: Eleftherios Eleftheria EKO – €0.948.

LARNACA

Cheapest 95: Theodoros Stavrou Anexartitos and the A&V Vavatsinos Ltd EKO – €0.998

Most expensive 95: EKO stations in Aradipou, Agglisides, Oroklini, Xilotimpou, Atheniou and Larnaca, and the Sinergatismos Athienou, Argiroulla & Basiliki Mina Lukoil in Alekthriko, and A/foi Xira Ltd Petrolina in Larnaca – €1.012 .

Cheapest  98: Theodoros Stavrou  in Anexartitos –  €0.999.

Most expensive 98: A/foi Xira Ltd Petrolina – €1.049.

Cheapest diesel: Theodoros Stavrou  in Anexartitos – €0.893

Most expensive diesel: A/foi Xira Petrolina – t €0.946 per litre.

PAPHOS

Cheapest 95: Andreas Karagiorgis LINA  - €1.007

Most expensive 95: AGIP, EKO and Petrolina in Yeroskipou and EKO Mandria – €1.013.

Cheapest  98: AGIP, LINA and Petrolina –  €1.037

Most expensive 98: D.A. Papasavvas Ltd ESSO – €1.049

Cheapest diesel: Andreas Karagiorgis LINA – €0.931

Most expensive diesel: Petros Diogenous AGIP –  €0.969

The Ministry urges consumers to contact the Competition and Consumer Protection Department’s consumer protection line at 1429 for further information or clarification.

‘Name and Shame’ list shows Limassol has most expensive petrol – Cyprus Mail.

AMID news that crude oil hit an eight-week high above $82 a barrel, near its highest this year, the government said yesterday it was fast-tracking a bill enabling it to cap wholesale fuel prices.

The Consumers Association meanwhile urged the government to come clean on whether price controls for essential goods were possible or not, following press reports that a legal relic from the 1960s allowed for price caps.

At the moment the government can only set a ceiling on the retail price of fuel and gas. The hole in the law was laid bare recently when oil companies selling directly to the consumer did not comply with a price ceiling as they were not obliged to.

“The bill is ready and will be put to the Cabinet as soon as possible, perhaps even today,” Commerce Minister Antonis Paschalides told newsmen.

Fast tracking cap for wholesale fuel prices – Cyprus Mail.