The island’s reduced excise tax rate on motor and heating fuels as well as on electricity expires on June 30 and the government doesn’t appear keen to extend the specific subsidy.
This is what Philenews reported on Wednesday, citing Finance Ministry Permanent Secretary George Panteli who also said technocratic studies show that fuel prices today have been reduced to approximately the levels of March 2022.
March 2022 was when the specific measures were first implemented in a bid to address inflationary pressures on consumers.
He also said that the Ministry’s studies also show that the continuation of the reduced excise duty on fuel is not justified.
And that, from July 1, the price of motor fuels “will return to normal levels” and will increase by about 8.32 cents a litre since the reduced percentage is to return.
Therefore, based on current fuel prices and if the Council of Ministers decides not to continue with the consumer relief measures, the average price of 95 octane unleaded petrol and diesel will rise from €1.38 per litre to €1.46 cents per litre.
The average price of heating oil will also increase by around 6.2 cents a litre to €1.04 cents a litre, up from today’s €0.98 cents.
