International refined product prices have fallen for the first time in six weeks, raising expectations that incoming fuel shipments to Cyprus will be cheaper and bring relief at the pump.
The Platts Basis Italy index, which is used to price fuel imports into Cyprus, recorded a significant drop after a prolonged run of increases. Brent crude is now trading below $100 per barrel.
The cumulative increase in 95-octane petrol prices since the start of the conflict has fallen from 57% to 41%. For diesel, the figure has dropped from 116% to 75%.
Despite an excise duty cut of 8.3 cents per litre that came into effect last Saturday, consumers did not see the full benefit at the pump. The actual average reduction was 7.9 cents for petrol and 7.6 cents for diesel.
“Prices fell, but due to the continuous increases in new shipments, average prices fell to a lesser degree,” said Constantinos Karagiorgis, director of the Consumer Protection Service, adding that the scope for further government intervention through taxation had been exhausted.
The current average price of 95-octane petrol is €1.520 per litre, ranging from €1.444 to €1.599 across forecourts. Diesel averages €1.843 per litre, with prices ranging from €1.747 to €1.899.
According to the weekly fuel price review bulletin of April 6, Cyprus ranks as the third cheapest country in the EU for 95-octane petrol, behind Bulgaria and Malta. For diesel, it ranks fifth, behind Malta, Bulgaria, Slovenia and Slovakia.
Karagiorgis said the gradual way in which companies have been passing on cost increases is the main reason prices have not spiked instantly. “A company may have a 25-cent increase in its shipment but applies it gradually, five cents a day,” he said.
The Consumer Protection Service monitors import prices, stocks and exchange rates daily. Increases to date have been deemed justified and documented by shipment costs. Karagiorgis said that if unjustified increases or market distortions emerged, immediate measures would be taken.
The gap between the cheapest and most expensive forecourt currently reaches up to 15 cents per litre. The Retail Price Observatory is available to consumers to compare prices.