Consumers have regained the three days they lost due to the reduction in consumption tax on motor fuels and have secured an additional 15 days for the implementation of reduced taxation on heating oil, following yesterday’s unanimous approval of the bill.
The bill is part of the 17 measures against high prices initiated by the government.
Starting today and until March 3, 2024, gasoline and diesel fuel will be cheaper by 8.33 cents per litre. Consequently, today’s average nationwide selling price of unleaded 95-octane gasoline will be £1.46 per litre, down from £1.55 yesterday.
The average selling price of diesel fuel will be £1.62 per litre, down from £1.71 the previous 24 hours.
Initially, the bill had envisaged the reduction of consumption tax on fuels from November 1, 2023, until February 29, 2024. Due to the fact that the Parliament’s Plenary did not convene last week, the measure to reduce consumption tax on fuels was extended by three days.
Heating relief arriving earlier
Moreover, as of November 15, instead of December 1, the reduction of consumption tax on heating oil will be implemented.
Specifically, during the session of the Parliamentary Committee on Economics, AKEL MP Andreas Kaukalias and DISY MP Onoufrios Koulas requested that the measure be implemented from today, as residents in mountainous areas have started using heating at night.
DIKO MP Alekos Tryfonidis further stated that, following consultations with the government, the reduction in consumption tax could be implemented from mid-November.
A representative of the Ministry of Finance stated that the ministry consents to the implementation of the measure from November 15. After receiving the green light from the relevant ministry, the measure to reduce consumption tax on heating oil will decrease by 6.39 cents per litre from November 15, 2023, until March 31, 2024.
The fiscal cost of the reduction in consumption tax on motor fuels and heating oil, including the 15-day extension, is estimated to reach £26 million.