Middle East instability impacts fuel price trends

Recent data from the Consumer Protection Service indicates that as of May 10, diesel prices in the retail market decreased by approximately 9 cents per liter on average. In contrast, 95-octane gasoline experienced an average increase of 5 cents per liter during the same period. Konstantinos Karagiorgis, Director of the Consumer Protection Service, stated that if recent Platts price trends persist, further retail price reductions are expected for both diesel and 95-octane gasoline. However, Christodoulos Christodoulou, Vice President of the Petrol Station Owners Association, noted that price fluctuations must be sustained and exceed 7 cents per liter to be felt by consumers. Both the government and the industry warn that the ongoing Middle East conflict and hostilities with Iran create significant uncertainty in international markets. Because of these geopolitical factors, authorities state that reliable long-term forecasts for fuel prices remain impossible. Separately, the Statistical Service reported that the consumer price index rose by 2.6% on an annual basis in May, driven in part by energy costs.