Cyprus: the winner is the consumer

The three-day-old fuel shutdown was beginning to approach crisis point yesterday morning with reports of overnight petrol theft, empty schools and banks, patients’ problems, ruined holidays and increasingly irate motorists. In one incident in Paphos, where no stations had been open for three days, two brothers came to blows when one was caught siphoning petrol from the other. In Paralimni five cars were emptied by thieves and there was a near riot at one station in Nicosia.

“We have realised the problem created for consumers; indeed they have been unjustly inconvenienced and they always have to pick up the bill,” owners’ association chairman Stefanos Stefanou said after calling off the strike, He said the petrol station owners had decided to show good will.

The announcement that the measure had been lifted was made following meetings between Paschalides, the association of petrol station owners and the fuel companies.

These were preceded by a meeting between them before the House Commerce Committee, which set a 4pm deadline for them to come to an agreement. If not, Parliament was ready to approve a bill allowing the government to cap wholesale prices.

Pump owners decided to shut down their outlets on last Monday, after the minister issued a decree putting a cap on fuel prices for eight days.

The retail price-cap for a litre for 95-octane petrol was 95 cents, and 97 cents per litre for 98-octane petrol. The price for a litre of diesel was marked at 87.5 cents.

But it seems unlikely that the prices set by the decree will last until Tuesday, when it expires, as new, more expensive, shipments of fuel are expected to arrive.

Paschalides said this week they will start discussions with those involved regarding the serious issues and problems troubling the sector.