EU countries

Consumers brace for fuel price shock

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Consumers brace for fuel price shock

Petrol prices in Cyprus are expected to increase by 14 cents per litre on April 1 due to the end of a government subsidy and the potential introduction of a green tax. The initial increase will be 7 to 8.3 cents a litre for motor petrol and diesel, and 6.3 cents for heating oil. The consumption tax on fuel is set to be reinstated at midnight on March 31. An additional increase of 5 cents may occur if the new green tax is approved. The green tax is expected to start from April 1, with an annual escalation from 5 cents in 2023 to 25 cents by 2033. Cyprus ranks among the EU countries with comparatively cheaper fuel. Petrol station owners warn of further increases due to pricier fuel shipments. The fuel tax exemption, introduced in March 2022, reduced the price of petrol by 7 cents a litre, diesel by 8.3 cents, and heating oil by 6.4 cents. In March 2022, the average price of 95 octane unleaded petrol was €1.44. As of the last reported Friday, the average prices were €1.412 for a litre of 95 octane petrol, €1.508 for diesel, and €1.067 for heating oil.

Fuel prices set to soar in April

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Fuel prices set to soar in April

Fuel prices in Cyprus are expected to increase significantly at the beginning of April due to the end of government subsidies. Initially, there will be an 8.3 cent hike per litre on petrol and diesel and a 6.3 cent increase on heating oil starting April 1. Additionally, a new green tax could add another five cents per litre, with the tax expected to increase annually, reaching 25 cents by 2033. The finance ministry aims to implement the green tax from April 1, potentially raising fuel prices by at least 14-15 cents per litre. The director of the consumer protection service mentioned that the return of the consumption tax on fuel is expected at midnight on March 31, but the impact might be somewhat mitigated by the recent stabilization of global oil prices. Cyprus is among the EU countries with the cheapest fuel, based on the European Price Observatory. The public consultation on the green tax bill has been completed, and its introduction is expected in 2024, with compensatory measures for vulnerable groups. The end of the fuel subsidy and the imposition of the green tax are seen as adding significant costs to consumers and businesses, with an estimated total increase in fuel prices of about 10 percent. Despite the increases, prices are not expected to surpass the record high of €1.83 per litre set in July 2022. The government had previously reintroduced the subsidy after motorists began traveling to the north to fill up their tanks due to high prices. There is also a call for changing the law so that new fuel prices come into effect at 6am instead of midnight to prevent a rush on petrol stations.

President optimistic for Gaza humanitarian aid progress

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President optimistic for Gaza humanitarian aid progress

President Christodoulides is optimistic about the outcomes of the European Council summit, focusing on a ceasefire in Gaza and increasing humanitarian assistance. UN Secretary-General Antonio Guterres supports Cyprus’s “Amalthea” humanitarian corridor initiative. A conference in Cyprus, attended by 36 states including 23 EU countries, all G7 nations, and the United Nations, discussed technical details of the initiative and a fund to increase humanitarian aid to Gaza. The Netherlands will contribute €10 million, and the EU will initially donate around €70 million to this fund. President Christodoulides plans to meet with the UN Secretary-General to discuss Cyprus’s initiative and the Cyprus problem. He emphasizes the EU’s role in resuming negotiations with Turkey and affirms Cyprus’s readiness to prepare a second ship for the humanitarian corridor, which complements other corridors. Cyprus seeks positive outcomes and references to Euro-Turkish relations based on developments in the Cyprus problem.

Hourly labour costs increase by 5.4%

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Hourly labour costs increase by 5.4%

– The hourly labor cost in Cyprus increased by 5.4% in the fourth quarter of 2023 compared to the same quarter of the previous year.
– The components of labor cost, wages and salaries per hour worked, increased by 5.6%, and non-wage costs per hour worked increased by 4.6% compared to the corresponding quarter of the previous year.
– Seasonally adjusted, the hourly labor cost increased by 1.2%, wages and salaries by 1.3%, and non-wage costs by 0.8% compared to the previous quarter.
– The Labor Cost Index is a major European economic indicator used to assess inflationary pressures from labor market developments.