Cheaper Petrol/Diesel/Heating Fuel (Cyprus Mail)

[Lincoln]

SIX CENTS PER LITRE OFF CAR AND HEATING FUEL TAX

Posted: 12 Dec 2018 07:13 AM PST


Cyprus Mail - 12 December 2018 - article by Evie Andreou

The parliament plenum on Wednesday unanimously approved a bill to reduce the tax on motor and heating fuel by almost six cents per litre
The reduction comes into effect on December 18.
In an extraordinary session, the House plenary voted in favour of the 5.95 cent per litre reduction in consumption tax on petrol, diesel and heating fuel.
The proposal, tabled by the leaders of Disy and Diko, Averof Neophytou and Nicolas Papadopoulos, was opposed by the government, which wanted to cut the tax on income from interest rates from 30 per cent to 17 per cent instead.
During the debate prior to the vote, Edek MPs had said they were not in agreement with the bill, but did not reject the proposal.

The reduction in tax on petrol, diesel, and heating fuel will cost the state €48.4m — €57.5m including VAT.

[trevnhil]

Well strangely perhaps, I am not really in favour of this reduction.. If the Government have a spare €50m then surely it would be better to use it on something like improving the General Hospital...
Yes, I will be pleased at paying less, but I would be better pleased at an improved Hospital..

[smudger]

Good point Trev.

[WHL]

Il take it all day long

[Dominic]

Cheaper fuel prices benefit everybody.

[Lincoln]

The point is re OIL prices. The electricity board put prices up because they had to pay HIGH prices at the time that they purchased it many moons ago. Not at today's prices. However the Electric company are making HUGE profits when all said and done

[Dominic]

Yes, the electricity board has to have a stockpile.

[Dominic]

I've never had a problem dealing with the staff there.

[LouiseCastricum]

Never had any problems with them.

[WHL]

Yes, the electricity board has to have a stockpile.

...of lazy staff doing sweet FA!!

That might apply to one or two, but its not a good idea to paint everyone with the same brush.

[Lincoln]

Never had a problem with any of the staff.

[Dominic]

Actually, you would appear to be in the minority.

[smudger]

Think it's incumbent on us all to check the future prices of electricity. If these comments re the buying - which I understand perfectly - are true, then in the future we should find the price of electricity dropping to accommodate the current drops in oil costs.

Anybody taking bets that somehow it simply won't happen???

[trevnhil]

Not too sure about this.. The 6c reduction is not because the cost of oil has dropped, but the government who have reduced the tax on Petrol Diesel and heating oil..

[smudger]

https://markets.businessinsider.com/com ... e?type=wti

Not really into commodities and oil, but this graph seems to support the latter drop in oil prices.

So we need to await the resultant drop in petrol prices. Not knowing the actual future cost of oil paid by Cyprus of course, and hence the time it will take to recoup their costs before we - the consumers - eventually feel any benefits!

[ApusApus]

Maybe the government are being clever knowing the 6c reduction in tax will be offset by the reduction in oil prices in the future!


Shane

[WHL]

Maybe the government are being clever knowing the 6c reduction in tax will be offset by the reduction in oil prices in the future!


Shane

How does that work?

[trevnhil]

The government will still lose around €50m in taxes..

[Dominic]

Maybe the government are being clever knowing the 6c reduction in tax will be offset by the reduction in oil prices in the future!


Shane

How does that work?

It doesn't, unless they raise the tax again once the oil prices drop. But they would have to announce that.

[ApusApus]

That's one way of doing it but what I was thinking was that any future drop in oil prices would not be passed on to the consumer, after all doesn't the government set fuel prices across the island or am I being cynical?


Shane