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OEB expresses concern on fuel price hike

16/01/2004 13:14
Employers’ and Industrialists’ Federation (OEB) expressed its concern on Friday on the negative impacts of the price hike in fuel to the economic activity of the country.

“This change has taken place in a ‘sensitive period’ and will have ‘chain impacts’ creating ‘inflationary pressures’”, OEB announced.

The Federation stressed that companies will be urged to pay for this increases twice, one as a cost of production and the other through ATA. “In this way, companies will be obliged to transfer the increased cost to the products or services they offer. This, in combination with the increases in certain basic products, undermines the competitiveness of the companies and the disposable income of the consumers”.

Satisfaction on electricity

OEB has also expressed its satisfaction on the refund of £3.8 million to the industrial companies by EAC, after a decision taken by the Council of Ministers. “These companies had paid an increased cost for electricity. The adjustment of the price control will relieve the Cyprus companies, which will pay for the electricity based on the real cost”, OEB concluded.