Breaking news

Government Pushes For Price Cap On Bottled Water

In a significant move to protect consumers, Cyprus President Nikos Christodoulides has advocated for a bill to impose price caps on bottled water at specific locations, including airports, ports, stadiums, and beaches. This intervention comes amid parliamentary discussions and concerns about the lack of a comprehensive study and consultation on the proposal. The bill aims to ensure bottled water is available at a regulated price in key areas, despite fears of potential unintended consequences. The decision on the bill’s urgency will be made in an upcoming parliamentary session.

Government’s Position and Legislative Process

The Cypriot government, led by President Christodoulides, is pushing for rapid adoption of this bill. The president highlighted the government’s ongoing efforts to safeguard consumer interests and improve living standards through various measures. However, the parliamentary committee has deferred the decision to a leaders’ meeting, reflecting the need for a thorough examination of the proposal.

Parliamentary Debate and Future Steps

Intense debates have unfolded in the parliamentary committee, with some members questioning the readiness and effectiveness of the proposed regulation. Energy Minister George Papanastasiou emphasized the necessity of the cap to protect consumers in monopolistic environments. The outcome of the leaders’ meeting will determine whether the bill will be fast-tracked for a vote or undergo further scrutiny in September.

This legislative push underscores the government’s commitment to consumer protection amidst broader economic considerations. For business professionals and consumers, the development of this bill highlights the balance between regulatory actions and market dynamics in Cyprus.

Competition Authority Launches Comprehensive Review of ExxonMobil Cyprus Acquisition

Investigation Initiated Over Strategic Acquisition

The Competition Protection Authority has commenced a thorough investigation into the acquisition of ExxonMobil Cyprus Limited’s share capital by Petrolina Holdings Public Ltd through Med Energywise Ltd. This inquiry was formally initiated following a session held on 10 September 2025, after an in-depth review of the pertinent report by the Authority’s Service.

Concerns Over Market Compatibility

Authorities have expressed serious concerns regarding the compatibility of the transaction with established competitive practices. The review indicates that the acquisition may affect several critical petroleum markets, both horizontally and vertically, thereby raising the potential for adverse impacts on market dynamics.

Horizontal Market Dynamics

On the horizontal front, potential effects have been identified in the import market for petroleum products, as well as in both wholesale and retail distribution channels of these products. The consolidation is believed to increase the risk of price rises and coordinated actions, given the direct competitive proximity between Petrolina and ExxonMobil.

Vertical and Adjacent Market Implications

Vertical aspects of the merger are also under close scrutiny. The new entity could restrict competitors’ access to critical infrastructure such as storage facilities, supply channels, and customer bases. These restrictions could further affect the onshore distribution of fuels, the wholesale market for lubricants, and specialized technical services connected with fuel station operations.

Local Market Considerations

Particular attention is being paid to the potential concentration in the retail fuel market. The investigation suggests that a reduced competitive landscape within a four-kilometer radius of the companies’ fuel stations could lead to diminished local competition, adversely impacting consumer prices and options.

Next Steps and Industry Impact

The Competition Protection Authority, which reached a unanimous decision to pursue a full investigation, remains open to submissions from parties that might be affected by this transaction, as mandated by current legislation. A final decision is expected within four months upon receipt of all necessary evidence, potentially setting a significant precedent for future market consolidation cases in the energy sector.

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