On Thursday, the Plenary of the Cyprus Parliament urgently reviewed and unanimously voted for a law aimed at reducing special consumption tax rates on fuels. Specifically, the regulations regarding motor fuel will be effective from November 3, 2023, to March 3, 2024, and for heating oil from November 15, 2023, to March 31, 2024.

The additional fiscal cost incurred from this measure amounts to €25.6 million.

DISY Member of Parliament Onoufrios Koulla noted that these are not new measures from the Government, but an extension of existing ones, a move allowed by the EU until the end of the year. He criticized the abolition of these measures during the summer, particularly for electricity, as it partly led to price increases and a reignition of inflation. This, he argued, was one of the reasons why the VAT reduction on products was ineffective.

AKEL General Secretary Stefanos Stefanou stated that the Government, expecting a decrease in fuel and electricity prices upon announcing the end of the measures, faced an eventual increase instead. He highlighted that we must not be complacent with these relief measures and that tougher times are still ahead. Stefanou further noted that other European countries have adopted significantly larger support measures.

DIKO President Nikolas Papadopoulos mentioned that the Government rightly avoided the easy path of populism previously, showing responsibility in awaiting Moody's evaluation and investment grade status. This, he said, was a strategic wait by the Government to support society. He added that the 17 new social support measures from the Government are commendable. He also mentioned the substantial responsibilities for why Cypriot consumers are paying the highest electricity prices.

DIPA MP Alekos Tryfonidis expressed satisfaction with the Government's overall relief package for citizens. He was also pleased that the Government accepted his party's suggestion to start the heating oil tax reduction from November 15 instead of December 1, considering the severe needs of mountain communities.

EDEK MP Ilias Myrianthous welcomed the passing of this specific bill. He noted that when the Government canceled this fuel tax reduction in the summer, due to a decrease in fuel prices, the savings were used for other social benefits.

Greens MP Charalambos Theopempou noted that the most crucial task ahead is to assist people in upgrading the energy efficiency of their buildings, especially in mountain areas, and to urgently take measures to reduce energy demand.