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We do not profit by the offsetting measures, EKO, Petrolina say

10/11/2005 13:52
Petrolina and EKO representatives stated on Thursday that the statements of AKEL MP, Yinnos Lamaris that the oil companies profit by the government’s offsetting measures are inexcusable. Speaking to StockWatch, Petrolina Executive Director, Ntinos Lefkaritis said that Mr. Lamaris’ statements are groundless. “We fix our tariff policy based on the prices fixed by the suppliers. If the price of diesel followed the same downward trend as that of the oil, it would certainly have been revised”, he said.

Similarly, EKO spokesman, Ntinos Papadopoulos said that Mr. Lamaris’ comments are not fair, since “the invoice of each load is at the Commerce Ministry’s disposal and can be compared to plats prices”. The fact that diesel is more expensive than unleaded 95 is linked to its increased demand.

The oil companies also denied the statements made by the House Commerce Committee Chairman, Aristos Chrisostomou, that fuel prices in Cyprus are determined by the companies and not the gas station owners. “We usually recommend the new prices but they owners are those to decide”, Mr. Lefkaritis noted.

On the question why prices in other EU member states are that different, Mr. Lefkaritis said that distances vary.

Mr. Papadopoulos, on the other hand, said that Cyprus has two types of gas station owners: those who own the stations and those whose gas stations belong to the company. “All EKO stations in Cyprus belong to our company, which puts a ceiling. If a gas station owner wishes to proceed to further price cut in order to become more competitive, he might do so. However, a possible price increase must not exceed the ceiling set by the company”, he said.