Fuel prices in Cyprus are on a downward trend but the fluid situation in the Middle East makes reliable forecasts impossible, the Consumer Protection Service and the Pan-Cyprian Association of Liquid Fuel Retailers have warned.
According to Consumer Protection Service data, diesel prices fell by an average of approximately nine cents per litre at retail level between May 10 and the time of reporting, while 95-octane petrol recorded an average increase of approximately five cents per litre over the same period. Service Director Konstantinos Karagiorgis made the remarks in a statement to the Cyprus News Agency (CNA).
Karagiorgis said that if the trends recorded in Platts prices — the prices at which refineries supply fuel to the market — over the previous approximately 15 days were maintained, further reductions in retail diesel prices and 95-octane petrol prices could be expected in the near term.
He noted that a downward trend in Platts prices had been recorded since May 20, driven in part by efforts to reach an agreement that had contributed to a de-escalation of international prices. He added that these reductions were expected to feed through gradually to retail prices, though the continuation of that trend could not be taken for granted given ongoing uncertainty.
Karagiorgis said the continuation of hostilities and the absence of a definitive agreement on the conflict involving Iran continued to affect international energy markets, which was directly reflected in fuel price fluctuations.
“As a result, no reliable estimates can be made about future price movements, as any development in the geopolitical environment may directly affect the cost of petroleum products,” he said, adding that any forecast should be treated with particular caution until there were clear signs of de-escalation and stabilisation of international markets.
Christodoulos Christodoulou, Vice President and Spokesperson of the Fuel Retailers Association, told CNA that the association’s earlier projections of small fuel price reductions had been confirmed, with two-cent-per-litre reductions recorded in both diesel and petrol since Monday.
He said further reductions of around two to three cents per litre were expected in the coming days for both 95 and 98-octane petrol and diesel, with the arrival of new fuel shipments.
Christodoulou said reductions of two to three cents per litre were not felt in consumers’ pockets, noting that for reductions to be noticeable they needed to be in the region of six to seven cents per litre and repeated two to three times.
He said consumption was at a good and normal level across Cyprus with the exception of Nicosia and free Famagusta, where consumers were travelling to the occupied areas to buy fuel.
Asked about the longer-term outlook, Christodoulou said no estimates were possible, noting that international crude oil prices had recently stabilised at around $96 per barrel after standing at $92, but that a rise to $100 per barrel internationally would push prices back up. He added that international crude prices were changing constantly and were tied to statements by US President Donald Trump.