No safe predictions can be made about the future path of fuel prices, due to the unpredictable situation surrounding the war in Iran, the Director of the Consumer Protection Service, Konstantinos Karagiorgis, told CNA.
Karagiorgis said that despite recent falls in fuel prices in Cyprus, they have not yet returned to the levels seen before the war. He said it may take additional time for prices to return to their previous, lower levels.
Meanwhile, the President of the Pancyprian Association of Petrol Station Owners, Savvas Prokopiou, told CNA he expected “a little more of a decrease” in fuel prices, though he said new developments linked to the Iran war could lead to increases at a later stage.
Karagiorgis said that fuel prices had followed a continuous and significant downward trend in recent times, but added that prices in Cyprus have yet to reach the levels seen before the war in Iran began.
According to Karagiorgis, calmer conditions in international markets had contributed to the recent price falls. However, he noted that the picture remains fluid, since “a sudden spark” could reignite tensions in the Strait of Hormuz region, with unpredictable consequences.
For this reason, he said, no forecasts can be made with certainty about the future path of fuel prices. Karagiorgis expressed hope that calm would prevail, allowing prices to return to pre-war levels, and called for avoiding scaremongering over potential price rises.
According to data from the Consumer Protection Service, between 2 June and 9 July, the average price of unleaded 95 in Cyprus fell by 14.4 cents per litre, while the average price of diesel fell by 34.9 cents per litre.
On 9 July, the average nationwide price of unleaded 95 was €1.467 per litre, with the cheapest price at €1.389 and the most expensive at €1.569. The average price of diesel was €1.570 per litre, with the cheapest price at €1.484 and the most expensive at €1.767.
Asked whether fuel shipments had arrived priced differently from current prices, Karagiorgis explained that there is a time lag in the pricing of fuel imported into Cyprus, since it takes several days to transport fuel from refineries abroad.
He said that fuel purchases currently on the Cypriot market were made around 10 days earlier, meaning that a recent movement in international crude oil prices is not immediately reflected in retail prices.
Karagiorgis added that the Service is monitoring refinery prices, which had been at low levels in recent times, contributing to the downward trend in fuel prices in Cyprus.
For his part, Prokopiou said he expected a further small decrease in prices, noting that the final price includes the state subsidy of 8.3 cents. He added, however, that he does not currently foresee any new decreases.
The President of the Pancyprian Association of Petrol Station Owners also said that prices have stabilised in recent times, while on the latest developments in the Strait of Hormuz, he said that given the current situation, “increases will certainly start at some point.”
(information from CNA)
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