Electricity prices to fall by 5%

Electricity prices in April are actually expected to be lower than in March, the state-run power utility said on Tuesday, although this benefit will likely be extinguished after April if current global crude oil prices remain high.

The House energy committee was discussing the increase in the price of fuels amid the Middle East crisis and the impact on the economy at large.

An official of the Electricity Authority of Cyprus (EAC) predicted electricity bills in April will be around 5.5 per cent lower compared to March. This is because of the 4 per cent drop in VAT, combined with a change in the fuel mix used by the EAC.

But, the official added, this reduction “will be lost in the coming months, when it’s expected that the next fuel purchases – if current fuel prices remain the same – will lead to increasing electricity costs”.

According to the official, on February 27 the EAC purchased diesel at $726 a tonne; today diesel goes for $1,366 a tonne. During the same period of time, Brent crude went up by 48 per cent.

In 2025 the EAC had ‘pre-purchased’ roughly 60,000 tonnes of the fuel, used for the months of July to December.

“We tried to do the same this year, but suppliers were unwilling,” he added.

Director of the Consumer Protection Service (energy and commerce ministry) Constantinos Karagiorgis said they’re monitoring fuel prices daily, “to ensure they’re in line with global trends and that no gouging takes place”.

Citing EU-wide data, Karagiorgis said that in Cyprus the average price for Unleaded-95 petrol jumped by 8.1 cents a litre between February and March 23.

By comparison, the change in the same period in Europe as a whole was 16.1 cents up, 16.1 cents in Greece, and 10.6 cents in Italy.

Currently, refineries sell Unleaded-95 to importers at prices that are 52 per cent higher compared to before the start of the war in the Gulf. Diesel is 89 per cent up, and heating oil 88 per cent up.

However, in the retail market (petrol stations) the increases are considerably lower – 20 per cent for Unleaded-95, 29 per cent for diesel, and 38 per cent for heating fuel.

“We observe that in Cyprus, based on all the data and the receipt slips of the companies, that the price hikes are moderate compared to what’s happening in other European countries.”

Meanwhile an official with Kodap – the Organisation for Storage and Management of Oil Stocks – said they maintain strategic reserves lasting 90 days.

The strategic reserves come to 542,000 metric tonnes.

Head of the Fiscal Council Michalis Persianis noted that “a considerable increase in inflation” should be expected in the coming months.

Initial estimates that the inflation rate would settle around 2 per cent this year should be “significantly revised upwards”.

According to Persianis, a higher inflation rate boosts nominal GDP while also helping reduce the national debt.