Electricity prices expected to drop in April before potential rise

Electricity bills in Cyprus are projected to decrease by approximately 5.5 per cent in April compared to March, according to the Electricity Authority of Cyprus (EAC). This reduction is primarily attributed to a 4 per cent drop in VAT and modifications to the EAC's fuel mix. However, officials warn that this benefit is temporary, as future fuel purchases at current high global market prices are expected to drive costs up again. The House energy committee held a session to discuss the impact of rising global fuel costs on the economy, noting that diesel prices rose from $726 per tonne on February 27 to $1,366 per tonne. Constantinos Karagiorgis, Director of the Consumer Protection Service, stated that the agency monitors fuel prices daily to ensure compliance with international trends. Industry representatives mentioned the difficulties in importing fuel supplies during the ongoing global crisis. The EAC also noted that attempts to pre-purchase fuel for this year, similar to a previous arrangement, were unsuccessful due to supplier reluctance.