Cyprus faces an energy crisis as fuel prices are set to rise within 10 days following the escalation of military operations in the Middle East, with international energy markets reacting sharply to surging oil and natural gas prices.
Fuel price increases at petrol stations will become noticeable within the next 10 days, said Savvas Procopiou, president of the Cyprus Petrol Station Owners Association. He stressed that since Friday, a 10-12% increase in fuel prices has already been recorded at the supply level, a development that will gradually pass to retail prices.
Economist Marios Clerides told philenews that any scenarios for the economic impact of the war on Cypriot society will depend on the duration and extent of the US-led war against Iran.
He noted that oil and natural gas prices have soared and if this phenomenon continues, it will also affect electricity prices in Cyprus, as the Electricity Authority of Cyprus uses fuel oil. Clerides also pointed out that the prices of alternative energy products will be affected.
Regarding tourism, he said he does not see a major risk unless the whole situation derails. “There will be a problem if they decide to strike areas outside the British bases,” he said. He also noted that Hezbollah’s participation in the war will play a significant role, as Lebanon is closer to Cyprus.
Asked whether fuel prices will increase in Cyprus, he replied that this will depend on petroleum companies. “If they have stock available, then it is difficult for prices to increase immediately,” he said.
He also referred to the possibility of price increases in basic products, noting that a problem will arise if, for example, oil prices increase and this is passed on to the real economy through increases in electricity prices and fuel, which may cause inflationary pressures.
Petrolina executive managing director Dinos Lefkaritis told the Cyprus News Agency there is no concern about fuel adequacy in Cyprus, as petroleum companies have the ability to proceed with alternative procurement markets if this becomes necessary. He explained that existing fuel stocks are sufficient for about 15 days, a level considered satisfactory for Cyprus.
The crisis comes as Iranian drones struck RAF Akrotiri early on Monday following US-Israeli strikes on Iran that killed Supreme Leader Ayatollah Khamenei on Saturday.
President Nikos Christodoulides declared on Monday that Cyprus will not be part of any military operation, whilst the UK evacuated military families from RAF Akrotiri and Cyprus activated Civil Defence forces.
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