Fuel prices rise after ending fuel tax reduction
Over the past days, following the termination of the government’s reduced tax measure on petrol and diesel, the average price of fuel in Cyprus has increased by 4.5 cents per litre for petrol, 1,3 cents per litre for diesel and 0.4 cents per litre for heating oil, according to the Consumer Protection Service (CPS).
Considering the reduced tax measure was only lifted on April 1, with gasoline prices already increased by 8.3 cents per litre and heating oil by 6.3 cents, this means that consumers have been paying more since the first 17 days of April, more specifically 14.7 cents per litre more for petrol, 9.7 cents more for diesel, and 6.4 cents more for heating oil, the CPS said.
As of Thursday, the average price for petrol is €1.558 per litre, whereas the corresponding average price for diesel is €1.605 and for heating oil is €1.132. Before the reintroduction of the consumption tax, the average prices were €1.411 for petrol, €1.508 for diesel, and €1.068 for heating oil.
“There has been an upward trend in fuel prices recently, something that is expected to be reflected in the Fuel Price Observatory,” CPS director Constantinos Karageorgis said on Thursday.
“We are experiencing rising price across the board, and we cannot hide that.”
The price increases occurred after Iran’s attack on Israel last Saturday. Risks of supply disruptions in the Middle East remain high with uncertainty as to what retaliatory actions Israel will take.
If the conflict escalates further, fuel prices and transportation costs will rise. The price of Brent crude oil has remained below $90 per barrel in recent days.
“However, the increase in the price of fuel is unrelated to Iran’s strike on Israel,” Karageorgis said.
“International markets did not yet panic, and oil prices globally have remained at the same levels. That said, no one knows how the situation will evolve.”