The government is working on new measures to help with rising energy prices, Finance Minister Makis Keravnos said, pointing to the Cabinet meeting on September 30 for decisions.
In an interview with Nikitas Kyriakou on ANT1’s midday programme, Keravnos said the government was closely monitoring developments. It would announce the additional measures when it judged the time was right. There is no final costing yet, he said, because final decisions have not been taken.
He left open the possibility of help with heating oil. Its price was put to him in the interview as having reached 1.60 euros. Keravnos said the government was monitoring developments and, thanks to the weather, did not need to act yet. It would decide when it did.
On fuel, Keravnos said that despite the price rises Cyprus remains the fifth cheapest country in the EU for petrol, citing figures. He asked listeners to imagine where prices would be if the government had not taken measures. On September 10, the Cabinet extended the cut in excise duty of 8.33 cents a litre on petrol and diesel until November 30.
Keravnos said VAT on electricity cannot go below 5 per cent under EU rules. He rejected criticism of “double taxation” over VAT being charged on top of excise duties. He said the issue had been raised repeatedly with the European Commission and there was no scope to handle it differently.
He acknowledged that higher energy costs are feeding through into the market and the prices of other goods. He pointed to existing electricity subsidies and zero VAT on basic goods.
Keravnos accused the opposition of “unbridled populism” over its criticism. Citing the performance of the economy, he said Cyprus was in a comparatively good position despite international and geopolitical pressures.
“We have not solved the problems,” he said. He added that the aim of economic policy was for the benefits of growth to reach citizens.
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