Cyprus fuel prices face pressure from rising oil costs and pending tax changes

Fuel prices in Cyprus are facing renewed upward pressure as international oil prices have risen from approximately $80 to $90-$91 per barrel within the last week. Christodoulos Christodoulou, Vice President of the Pancyprian Association of Petrol Station Owners, reported that continuous small increases have been observed over the past two weeks, with diesel being particularly affected.

The situation is compounded by the scheduled expiry of reduced fuel taxation on September 17. If the government does not extend this measure, consumers could face an automatic price increase of 8.33 cents per litre, potentially driving diesel costs close to €2 per litre.

Industry representatives emphasize that it is currently impossible to predict the exact impact on retail prices. Companies must first receive shipments purchased at the current higher international rates, and the significant daily fluctuations in global oil markets make forecasting difficult for retailers. The industry remains in a wait-and-see mode regarding final pricing adjustments.