Government officials told incredulous MPs on Tuesday that retail fuel prices in Cyprus are at "acceptable levels" given the global uptick and compared to other EU countries. Constantinos Karagiorgis, director of the Consumer Protection Service in the commerce ministry, said price increases in recent months registered lower than the EU average and that absolute prices for Unleaded 95 and heating fuel remain among the lowest in the bloc. His department constantly monitors retail prices and their fluctuations.
Karagiorgis stated that prices must be assessed based on what is happening in Europe and globally, not in isolation. He added that despite Cypriot consumers bearing more cost, authorities must not create the impression that Cyprus is a special case where increases are out of control. Since the beginning of September, the department has used econometrics to track retail prices, factoring in daily data from Platts, currency exchange rates, and information from fuel importers in Cyprus. The official said the government cannot intervene unchecked in the market and that models from firms show prices are acceptable considering all data across the import chain.
These assertions conflict with Eurostat data released last month showing Cyprus recorded one of the EU's sharpest monthly increases in petrol prices in August. MPs demanded to see the formula for calculating retail prices but officials refused to disclose it. Disy MP Nikos Georgiou said three government departments could not divulge the formula or specify how much consumers are burdened by fuel taxes and duties. He stated the state ought to have the answers, especially when it comes to the self-evident.
Marios Drousiotis, head of the Consumers Association, asserted that the department does not monitor prices as closely as it claims. His association has tracked prices at the pump since the consumption tax was slashed by 8.33 cents a litre and found that 19 petrol stations did not lower prices at all while 97 stations lowered prices but not as much as the discount. Drousiotis insisted the department has not closely monitored the issue. MPs also asked a finance ministry official how much the state collects from fuel sales and whether VAT cancels out the tax discount, but she said she did not have the data on hand. The tax department stated only that net VAT revenue has not increased, with net revenues at €32 million in 2024 and 2025 and €24 million so far this year. MPs also questioned the Commission for the Protection of Competition, which said similar prices do not indicate collusion and that a 2014 investigation covered the entire supply chain. The CPC confirmed a new probe launched in 2024 remains ongoing.