Fuel prices set to rise as Cyprus maintains 90-day reserves
Cyprus is facing further fuel price increases in the coming weeks, though supplies remain sufficient for around 90 days, petrol station association president, Savvas Prokopiou, said on Friday.
“Naturally, there will be an uptick in price, unless something changes dramatically,” he said, adding that prices could rise by another five to six cents per litre.
Prokopiou said fuel price management is being coordinated with the consumer protection service and importing companies.
“In a period of 13 days, six increases were imposed on gas station operators by fuel importing companies,” he explained.
He described the possibility of a shortage as remote, stressing that Cyprus has historically maintained ample reserves and that any disruption would likely affect many countries, not only the island.
Prokopiou called for government intervention through fuel subsidies, similar to measures implemented in 2022.
“When the price increases, VAT revenues also rise. The state should come in and partially subsidise fuel,” he said, estimating that a 50-cent increase in fuel prices generates around 8.5 to 9 cents more in VAT per litre.
Prokopiou expressed scepticism over the effectiveness of a price ceiling on fuel.
“Despite the positive thinking of former energy minister George Papanastasiou, a ceiling was imposed on the retail price only, which did not work and did not last even 24 hours,” he said, adding that for such a measure to succeed it would need to start at wholesale level.
He defended the industry against claims of profiteering, saying that gas station operators follow policies based on wholesale costs and that any irregularities have been brief and isolated.
“Especially now, due to the increased prices, gas station owners are more aware, and prices are where they should be,” he insisted.
The price hikes are part of a wider global energy disruption caused by the ongoing conflict in the Persian Gulf, which has sent oil prices soaring and triggered ripple effects across electricity, transport and food production.
Energy expert Charles Ellinas had previously warned that Cyprus could face “a fairly large increase” in diesel, petrol and electricity costs, adding that “everything is affected… these cuts are very serious and have caused global chaos in the supply of materials.”
Electricity authority chairman Giorgos Petrou said Cyprus’ reserves, sufficient for about six weeks, would allow some mitigation, but he expected electricity bills to rise in May.
He added that if the crisis eases before the next shipment in early May, costs could be adjusted downward.
Prokopiou concluded that the situation will eventually stabilise.
“At some point the price will go back down again, along with the prices of raw materials such as iron and paper. At some point their prices will return, but for some products the prices will remain high forever.”