Global drop in oil prices not being passed on to consumers
By Leo Leonidou
CYPRUS CONSUMERS have fallen victim to petrol companies, who are exploiting the recent record highs in crude oil prices and not lowering them accordingly.
That was the verdict of the Head of the Commerce Ministry’s Energy Department. Solon Kassinis was quoted in one of the island’s dailies as saying that when the price of crude oil was rising, petrol prices would indicate this, but now that the price has come down, he is questioning why an equivalent drop is not being seen, accusing the petrol companies of profiteering.
Kassinis claimed that the price of fuel has come down by 9.6 cents a litre abroad, but only by three cents in Cyprus and suggested introducing a mechanism into the market which would automatically adjust prices depending on what crude is doing.
On Wednesday morning, oil fell to a three-month low of $118 a barrel, providing some respite for economies around the world.
Finance Minister Charilaos Stavrakis said the immediate effect for Cyprus would be cheaper fuel.
On July 11, US crude reached an all-time high of $147 a barrel
Stavrakis added that the potential is there to drop the retail price further, but he left the matter in the hands of the petrol companies, making it clear that we live in a free market economy and that the government cannot impose a reduction.
Both the Finance Minister and Kassinis called on the Committee for the Protection of Competition (CPC) to intervene, with head Costakis Christoforou telling state radio that two cases were pending before the Committee regarding suspected fuel cartels in Cyprus.
The head of the Association of Petrol Station Owners yesterday said that, “this is a matter for the petrol companies themselves.”
Commenting, Petrolina Director Akis Lefkaritis told the Mail: “In May, we would buy one metric tonne of fuel for $112, with the price today $105.
“We import small quantities of 5,000 tons every 10 to 15 days and if any new deliveries are cheaper, then we will, of course, lower prices.”
Earlier this week, the Commerce Ministry called on consumers to help keep fuel prices down by comparing different prices offered by petrol stations.
The Ministry’s Competition and Consumer Protection Service released a list of fuel retail prices on the island, confirming that most outlets had conformed to the oil producers’ recommended prices.
The Ministry said that by checking the price list outside each petrol station and choosing the cheapest option, consumers could help keep prices at justified levels.
n Consumers can check prices as set by petrol stations in every district by visiting the website, http://www.mcit.gov.cy or calling the consumer helpline, 1429. |
