Fuel tax

Soaring fuel prices in Greece have put the country in the unenviable position of being among the six most expensive in the world for unleaded gasoline, and are set to have multiple consequences on the entire production chain. The latest tax assault on fuel consumption has also placed it among the 15 most expensive countries in the world when it comes to diesel.

The weather forecast may well see a temperature high of 26 Celsius in Athens this weekend, but Saturday will still see the start of heating oil trading across Greece for this winter.

Prices of cigarettes will increase as of January 1st, 2017.

This became clear from the tax law amendments proposed by the Finance Ministry, reported Nova TV. The amendments include a higher excise tax on cigarettes.

This comes as no surprise since Bulgaria has to fulfil the minimum excise requirements in the European Union by 2018.

While gasoline prices have decreased by an average of 60 percent around the world between June 2014 and January 2016 amid a plunge in oil prices, Turkish gas prices have only dropped 16 percent due to a loss in the Turkish Lira's value and higher taxes as well as low shares of raw materials in fuels, according to sector representatives. 

The first day of the New Year will see a rise in excise duties on fuel and alcoholic drinks, Tanjug is reporting.

However, "for now there is no fear the price of fuel would go up at the very start of the year," the agency said on Thursday.

An increase to car excise duties is being examined by the Ministry of Finance. The new rules being considered will charge car duties according to mileage as well as a reduction (but not abolition) of the annual rate that car owners pay.

Bulgaria's Finance Ministry announced that each year around 1.2 million tonnes of diesel are not declared to the revenue agencies, which amounts to 36.2 % of the fuel consumption in the country.

The Ministry estimates that the losses to the budget from tax evasion and avoidance of excise duties amount to BGN 1.1 - 1.2 B, electronic daily Dnevnik reports.

By Chryssa Liaggou

The local fuel market is hoping that Wednesday’s positive start to the heating oil distribution season, with prices from as low as 99 cents per liter and an average of 1.05 euros/liter, will put an end to the big decline in the sector’s turnover seen over the last few years.

Athens Chamber of Commerce and Industry (EBEA) President Constantinos Michalos on Wednesday reiterated his support for a cut in the special consumption tax on heating fuel, with a parallel clampdown on illegal trading and fual adulteration.

Romanians are about to be hit by a series of price hikes, as new excise taxes on gasoline and cigarettes become effective this week on April 1.

The new fuel tax is set at seven cents a litre, meaning a price increase of 0.41 lei (0.09 euro) per litre of fuel, according to estimates.