The conflict in the Middle East is sending shockwaves through global energy markets, with oil prices surging past $100 a barrel at points, prompting several governments to impose fuel price caps. Cyprus has yet to act, but the Energy Ministry says the issue remains open.
According to information received by Phileleftheros, the ministry is monitoring the situation and will take measures to contain prices if necessary.
Current average fuel prices in Cyprus stand at €1.378 per litre for petrol and €1.508 per litre for diesel — roughly two cents higher than before the conflict erupted. However, the president of the Pan-Cyprian Association of Fuel Station Owners, Savvas Prokopiou, warned that consumers should expect further staged increases in the coming period, particularly if the conflict does not de-escalate soon.
Greece, Croatia, Hungary, South Korea and Thailand have already introduced some form of price cap or profit margin limit on fuel. In Greece, where a profit margin cap has been introduced, petrol has exceeded €1.85 per litre and diesel €1.82.
Croatia has capped petrol at €1.50 and diesel at €1.55, while Hungary has set limits of €1.51 and €1.56 respectively. South Korea has also introduced a price ceiling, with petrol running at around €1.28 per litre and diesel at €1.30.
Germany has opted for a different approach, deciding that fuel stations may raise prices only once per day to prevent profiteering.
German Finance Minister Katherina Reiche said the government would introduce the model as soon as possible in response to the sharp fuel price increases caused by the war in Iran, adding that prices had been observed to rise very quickly when oil costs increase, but fall much more slowly when costs come down.
Cyprus has imposed a fuel price cap only once before — in 2010, under President Demetris Christofias and Commerce Minister Antonis Paschalidis. The measure provoked strong reactions from the industry, with several stations running low on stock or operating poorly, leading to queues and disruption for consumers.
The most recent government intervention came in March 2022, when the Russian invasion of Ukraine triggered an energy crisis. With parliamentary approval, the government amended the Consumption Tax Law to cut excise duty on petrol, road diesel and heating oil — reductions of around 8.3 cents per litre on road fuels and 6.4 cents on heating oil.
A similar tax cut could be deployed again in 2026 should fuel prices rise sharply. A straightforward price cap, sources suggest, would be complicated by Cyprus’s particular circumstances as an import-dependent market, potentially creating supply and retail problems.