The House of Representatives has unanimously passed an emergency bill cutting the excise duty on motor fuels by 8.33 cents per litre, with the measure taking effect from Saturday 4 April and running until the end of June.
Under the reduction, petrol drops from €0.429 per litre to €0.359 per litre and diesel from €0.40 per litre to €0.33 per litre, all figures inclusive of VAT. The bill, examined earlier today by the House Finance Committee before being put to a plenary vote, carries a fiscal cost of €18.6 million.
Several MPs warned that fuel operators could exploit the tax cut by passing only part of the saving on to consumers. Finance Committee chairwoman Christiana Erotokritou of DIKO called on the Consumer Service of the Energy Ministry to intervene and monitor compliance. DISY MP Onouphrios Koulla echoed the call for consumer protection authorities to act against profiteering and said the situation required seriousness and responsibility from all sides despite the approaching elections. He also called for targeted additional measures for vulnerable population groups and tourism businesses. ELAM MP Sotiris Ioannou similarly called on the authorities to prevent profiteering, noting that taxes account for between 40% and 50% of the final price of fuel.
Ioannou also pointed to a separate revenue concern: the state is losing millions in tax income because many Greek Cypriots travel to the occupied north to purchase cheaper fuel.
AKEL MP Andreas Kafkalias criticised the government’s handling of the process, saying it had announced the fuel tax reduction last week but only submitted the bill today, giving fuel industry professionals time to absorb the reduction before it formally took effect.
A Finance Ministry representative told the committee that when the measure expires at the end of June it will be reviewed for possible renewal.
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