This winter will be difficult for consumers, the Cyprus Consumer Association said, as the price of heating oil has increased by 50% in one year.
Speaking to Phileleftheros, president of the Cyprus Consumers Association Marios Drousiotis expressed the view that people will buy fewer quantities of heating oil and will turn to woodstoves or airconditioners to warm their houses.
Fuel prices increased again this week in Cyprus, just after it was announced that Brent crude oil was traded at around $90 per barrel.
Fuel oil prices have increased by three cents per litre in one week and are expected to rise even more, according to predictions.
The average price of unleaded petrol is now 1.47 euros per litre from 1.44 euros last week. The cost of diesel has also increased from 1.78 to 1.80 euros. The uncharged price of heating oil is 1.39 per litre.
The prices would have been even higher if the government had not intervened to reduce the excise duty.
Furthermore, due to the war in Ukraine, Russia has reduced the production of natural gas and increased oil exports.
Due to the significant demand for diesel noticed, the price of diesel in Cyprus has exceeded the price of unleaded petrol.
Specifically, the difference between the two increased to 33 cents per litre from 10 cents per litre last January and is now expected to reach 43 cents per litre.
People using heating oil at home will face issues this winter since it is now one of the most expensive heating options.
The decision of OPEC countries (Algeria, Angola, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, the Republic of the Congo, Saudi Arabia, the United Arab Emirates and Venezuela) to cut oil production by 2 million barrels per day as of next November also led to the increase of the Brent crude oil price.
The group said the decision was based on the “uncertainty surrounding the global economy and oil market outlooks.”
Therefore to fill the tank of a house will 1,000 litres of oil, consumers will need 525 euros more than last year, with the current prices.
On top of this, prices of firewood have increased by 50%, Drousiotis says, however they are still a cheaper alternative than heating oil.
Consumers can contact the Forestry Department to buy firewood. Prices are set at 60-110 euros for a truck’s worth of wood.