Fuel prices in Cyprus have recorded significant increases since 1 March, putting additional pressure on household budgets and consumer purchasing power.
Speaking on “Protoselido”, Cyprus Consumers Association president Marios Drousiotis said that, excluding the subsidy, petrol had increased by 35 cents per litre since March, diesel by 52 cents and heating oil by 61 cents.
For a household filling a typical 1,000-litre heating oil tank, this represents an additional cost of €618, according to Drousiotis.
He also estimated that fuel prices could continue rising in the coming weeks, despite fluctuations in international oil prices.
Heating oil reaches new high
Drousiotis criticised the decision not to include heating oil in the subsidy scheme.
He said there is significant consumption of heating oil even during the summer, citing figures of around 2,000 tonnes per month.
He also said the price of heating oil had exceeded the previous all-time high by four cents per litre, describing the current level as a new record.
Energy costs add to inflation pressures
Economic analyst Giangos Hatzigiannis linked the rise in energy costs to geopolitical developments, war and continued uncertainty in international markets.
He said the uncertainty had not eased and that higher energy costs were contributing to inflationary pressures across Europe.
Hatzigiannis also pointed to higher transport costs and continued uncertainty surrounding maritime shipping.
For Cyprus, he highlighted the high cost of electricity and the country’s dependence on heavy fuel oil. He identified greater use of natural gas and increased battery storage capacity as two measures that could help reduce energy costs.
According to Hatzigiannis, Cyprus remains behind its original plans for natural gas utilisation, while progress has been made on energy storage, but capacity has not yet reached the required level.
Reliance on cars increases impact
Hatzigiannis said Cyprus’s heavy reliance on private vehicles makes consumers more exposed to fuel price increases.
Public transport use remains limited, meaning changes in international oil prices are transferred more directly to household costs.
He also noted that traffic congestion adds to fuel consumption because drivers spend longer periods on the road.
Drousiotis distinguished between harmonised inflation and the broader cost-of-living impact, saying inflation in Cyprus reached 3.5% in August, up from 2.9% in July.
Hatzigiannis noted that harmonised inflation is an important European indicator and is used by the European Central Bank when making monetary policy decisions. Changes in inflation can therefore affect interest-rate decisions, which are particularly significant for Cyprus given household borrowing levels.
Consumers paid €23 million more for fuel
Drousiotis said a Cyprus Consumers Association survey found that consumers had spent around €23 million more on fuel between 1 March and the end of August.
He said the additional spending affects the wider economy because money spent on fuel is no longer available for other forms of consumption and economic activity.
Hatzigiannis added that, despite positive developments in areas such as unemployment and public debt, inflation remains a significant concern.
He also pointed to Cyprus’ trade deficit and higher import costs, together with geopolitical developments, as additional sources of pressure.
Call for fuel subsidy to reach consumers
Drousiotis called on the Finance Ministry and Energy Ministry to ensure that any fuel subsidy is fully passed on to consumers.
He claimed that during the previous subsidy for petrol and diesel, some petrol stations did not reduce their prices by the full subsidy amount, while others made smaller reductions.
According to the figures he cited, 19 petrol stations did not reduce prices at all by the 8.33-cent subsidy, while another 97 reduced their prices by a smaller amount.
Also read: Cyprus authorities assess Revolut data breach
For more videos and updates, check out our YouTube channel
