Cyprus sees fuel price drop by 2-3 cents

Cypriot households burdened by rising living costs are getting a reprieve as fuel prices drop, with further reductions expected by the end of August. The latest fuel shipment, which arrived at service stations on August 2, was priced lower, prompting two companies to already reduce their pump prices. More companies are expected to follow suit in the coming days.

Fuel prices have dropped by an average of 2 to 2.5 cents per liter for both petrol and diesel, with potential further reductions to 3 cents by month's end.

The Cyprus Consumers' Association anticipates a widespread decrease in prices across service stations this week, suggesting that the drop may extend beyond the current reductions. This development is seen as a positive amid rising costs for basic goods, particularly fruits and vegetables, which have strained household budgets.

As of last Friday, average fuel prices ranged from €1.496 per liter in Nicosia to €1.585 per liter in Paphos, according to the Consumer Protection Service’s retail fuel price observatory. Unleaded 95 octane petrol was cheapest in Nicosia at €1.496 per liter and priciest in Paphos at €1.516 per liter. For unleaded 98 octane petrol, prices varied from €1.570 per liter in Nicosia and Larnaca to €1.585 per liter in Paphos. Diesel prices followed a similar pattern, with the lowest at €1.543 per liter in Larnaca and the highest at €1.557 per liter in Paphos.

A European Union report dated July 29 placed Cyprus mid-tier in terms of fuel prices among member states, with unleaded 95 octane petrol averaging €1.509 per liter and diesel at €1.560 per liter. The lowest prices were found in Bulgaria (€1.332 per liter) and Malta (€1.210 per liter), while Denmark (€2.046 per liter) and Belgium (€1.759 per liter) had the highest.

The return of higher fuel taxes on April 1 added 8.3 cents per liter to petrol and 6.3 cents per liter to diesel prices, reversing the previous reduction. This tax reinstatement contributed to Cyprus's recent rise in fuel cost rankings within the EU.

Fuel prices in Cyprus have historically been a contentious issue between the European Commission’s Directorate-General for Competition and Cypriot authorities. The EU has consistently urged Cyprus to avoid broad social measures, including tax reductions on fuel, which has kept prices relatively low. Additionally, the ongoing war in Ukraine and potential conflicts in the Middle East are anticipated to further impact international fuel prices.

[Summary of Yiannis Ioannou's original story in Greek published in Kathimerini's Cyprus edition]