There is currently no justification for raising fuel prices in Cyprus, even amid ongoing geopolitical turbulence, Energy Minister Giorgos Papastasiou said on Tuesday. Speaking after a session of the House Trade Committee, he emphasised that the current situation does not resemble past crises such as the Gulf War.
Papastasiou acknowledged concerns over the Israel–Iran conflict but insisted that the government is taking proactive steps to maintain market stability. “We are realists, and of course we are concerned,” he said. “But we are also making moves to ensure the local market remains at reasonable levels.”
Energy supply now more diversified
The Minister noted that global dependence on fossil fuels has decreased significantly since the early 2000s. While the world once relied on Saudi Arabia for 20–25% of its oil, that figure has now dropped to around 10%. The United States, once producing just 2% of global oil, now contributes 16%.
“There is broader distribution in oil production globally,” he said. “That’s why I do not expect this conflict- which remains regionally contained- to cause a permanent increase in fossil fuel prices.”
He predicted a short-term spike, driven more by trader psychology than actual disruption. “We at the Ministry believe any price jump will be temporary,” he added.
Fuel price cap not ruled out
Asked about the possibility of introducing a price cap on fuel prices in Cyprus, Papastasiou said there is no fixed number under consideration. However, the Ministry monitors wholesale and pump prices and will intervene if necessary, either through dialogue or direct regulatory action.
“The cap is not a goal in itself,” he said. “Free markets operate on profitability, but if we see unjustified movements, we won’t hesitate to act.”
Green tax policies under review
Addressing the potential extension of green taxation, the Minister stressed that “consumers should be burdened as little as possible” during geopolitical upheaval. Any increase in electricity taxation ultimately impacts the wider economy, he said.
Studies are underway by the Ministry of Finance to determine what measures are fiscally and socially sustainable. The aim, he said, is to strike a balance between environmental goals and economic realities.
Also read: Fuel price hikes spark concern over cost of living
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