Dialogos

AKEL Warns of Imminent Price Crisis in Cyprus, Criticizes Government's Lack of Plan

Published March 23, 2026, 09:03
AKEL Warns of Imminent Price Crisis in Cyprus, Criticizes Government's Lack of Plan

AKEL is warning of an impending price crisis in Cyprus, highlighting the government's lack of a plan to address the situation. Vakis Charalambous, head of AKEL's energy sector, stated that the situation will worsen due to the consequences of the war and Cyprus's dependence on oil. The party is calling on the government to take immediate measures, such as abolishing green taxes, reducing VAT on electricity, and expanding automatic enrollment of eligible beneficiaries in the EAC's special pricing scheme. Additionally, they propose a gradual abolition of double taxation on fuels and strengthening controls for price transparency. AKEL also proposes measures to protect tourism and support small and medium-sized enterprises and borrowers, depending on the evolution of the war. The delay of the government in relation to other countries that have already taken measures is emphasized. As funding sources for the proposed measures, AKEL suggests auctioning off pollution rights to address energy poverty, taxing windfall profits, and imposing a solidarity tax on banks and renewable energy companies, as well as funding from the European Union. Mr. Charalambous emphasizes the need to shield citizens and the government's lack of determination to limit energy costs, while calling for immediate action to prevent the onslaught of price increases.