Fuel station owners and the competent service of the Ministry of Energy have warned that consumers should prepare for increases in motor fuel prices, as the conflict in the Middle East once again spills over into Cyprus’s petrol stations.
Donald Trump’s threats of a collapsing ceasefire and fresh US strikes on Iran have unsettled markets, pushing up Brent prices. Those threats have since materialised, with strikes on infrastructure carried out on both sides.
Markets have now moved from asking “whether there will be a new flare-up” to “how long it will last.” That question, over the duration of the strikes, holds the answer for oil prices, with the Strait of Hormuz having “unofficially” closed again and the global oil and gas supply chain on alert once more.
International oil prices moved slightly higher on Thursday, with Brent reaching $78.4 a barrel, up from $78.02 the previous day, while US WTI rose to $73.8, from $73.52.
Prices expected to rise
The market remains jittery against the backdrop of developments around Iran and the Strait of Hormuz. That nervousness and concern has already spread to Cyprus, as statements from fuel station owner representatives and the director of the Ministry of Energy’s Consumer Protection Service indicate that Cyprus should expect increases in motor fuel prices.
The service’s director, Konstantinos Karagiorgis, said in statements yesterday that no safe predictions could be made about the trajectory of motor fuel prices. He nonetheless noted that renewed tension in the Strait of Hormuz would also affect prices in Cyprus.
According to Karagiorgis, consumers in Cyprus see fluctuations in fuel prices with a delay, since fuel imports from refineries are based on the prices that applied roughly during each preceding ten-day period.
The president of the Pancyprian Association of Fuel Station Owners said consumers should not expect further reductions in fuel prices, and should instead prepare for increases due to recent developments and the fresh escalation in the Middle East.
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