The technocrats of the Ministry of Finance are drafting new measures addressing inflation.
The proposal of the competent ministry, which will be submitted tomorrow, Wednesday, to the Council of Ministers, has almost been completed, but some decisions are still pending.
As Phileleftheros has already reported, the continuation of the phased subsidy of the electricity price has been locked until June.
The current measure expires at the end of the month and will be extended for another three months, costing €45 million.
The continuation or not of the reduction of consumption tax on motor fuels is pending, which expires on March 3.
According to technocrats, the data does not seem to justify the continuation of the measure, the fiscal cost of which amounts to €21.8 million over the last three months.
The reduction in consumption tax on heating oil expires at the end of March, with a fiscal cost of €4 million.
Fuel prices during this period are significantly lower than those before the reduced tax was implemented on November 2, 2023.
According to an analysis by Phileleftheros, the price of unleaded gasoline 95 octane today, compared to last November when the measure was reintroduced, is 10.7 cents per liter lower (-6.9%), the price of diesel is lower by 14.8 cents per liter (-8.7%), and heating oil is lower by 11.7 cents per liter (-9.5%).
According to the European Commission’s bulletin, Cyprus ranks 3rd in the lowest prices for unleaded gasoline and diesel, and 8th in heating oil.
If the normal consumption tax on fuels is reintroduced, our country will rank 5th in the lowest prices for unleaded gasoline, 8th in diesel, and 10th in heating oil.
However, the possibility of the measure continuing but at a 50% reduction is being considered. Yesterday, the Director-General of the Ministry of Finance, Giorgos Pantelis, speaking on the midday show of Alpha, stated that the reduction of consumption tax on fuels is being evaluated and noted that the policy for green transition is also being taken into account, pointing out that any extension of the measure would conflict with the imminent imposition of a green tax on fuels.
Regarding the continuation of zero VAT on some products, the decision will be made later, as the measure expires.
