Letter from the General Secretary of the C.C.  of AKEL to the Minister of Energy

 

The reduction of consumer tax on fuel has not led to a reduction in prices

15 March 2020, AKEL C.C. Press Office, Nicosia

The General Secretary of the Central Committee of AKEL, Stefanos Stefanou, today sent a letter to the Minister of Energy, Trade and Industry, Natasha Pilidou, in which he notes that the reduction of consumer tax on fuel has not led to a reduction in prices. The General Secretary of AKEL also calls on the government to carry out real SCRUTINY and to confront the big private interests.

The letter follows:

“As had happened on previous occasions too, the reduction of consumer tax on fuel has not led to a reduction in prices. On the contrary, in just a few days and literally overnight, prices were increased simultaneously in all fuel companies. Any benefit to the consumer from the reduction in consumer tax was wiped out.

The phenomenon of a sudden increase in the retail price of fuel when international prices rise, as opposed to a belated and delayed reduction when international prices fall, has been raised many times in the past, both by us and by other bodies. We are seeing the same phenomenon now, which again highlights the issue of the effectiveness of controls to stamp out profiteering, but also the inability of the state to confront any previous wheeling and dealing between oil importing companies. As many times as we have raised these issues both in and out of Parliament, I regret to note that we have never received convincing answers from the competent Ministry.

Consumers are asking, how is it possible that overnight all companies’ fuel prices have increased simultaneously and in a uniform way? When did the companies order the cargoes, when did the ships arrive, when were they invoiced, when were they taxed, when did the fuel go to the filling stations? Who was supposed to control the procedures, the prices and protect consumers from the profiteering if not the government itself?

From time to time the Ministry has made various assurances that it would thoroughly examine and find solutions to the issues of fuel pricing (the formula by which prices are set), ensuring competition, effective controls and cracking down on profiteering, but we have never seen any proposal to date. When the debate surrounding these issues ends, the assurances are forgotten.

At the same time, the government has never seriously discussed the proposals and suggestions that AKEL and other parties submit in Parliament. Usually we are met with outright rejection or sometimes even irony. We have never received an answer as to why double taxation on fuel should not be abolished, as we have long been proposing, or why a price cap should not be issued to protect consumers.

Madam Minister,

It is clear that unless the government is willing to exercise real control and confront powerful private interests, even the inadequate measures it announces will fade away, as they have now. Consumers cannot afford any more excuses. They demand effective measures, which unfortunately they do not see.”