Panayiotis Rougalas
The situation in the Middle East is raising concerns, while Europe says it is preparing for a longer period of instability that could include disruptions in shipping, higher energy prices, and inflationary pressures. These remarks were made Monday in Brussels by Eurogroup President Kyriakos Pierrakakis in the presence of Kathimerini, noting that energy remains at the center of attention.
During the Eurogroup meeting, officials said member states discussed the types of measures they are considering. However, as of the day after the Eurogroup meeting, when ECOFIN also convened, the price of oil remained between $80 and $85 per barrel.
In discussions with officials on the sidelines in Brussels, it became clear that governments would consider measures related to energy prices only if oil rises above $100 per barrel for a sustained period. As of Wednesday, that sustained period appears to have begun. When asked by Kathimerini what qualifies as a sustained period, officials indicated that it would mean at least two weeks.
If oil prices remain above $100 per barrel for that length of time, support measures are likely to follow. Officials also told Kathimerini that any measures would vary from country to country and would be tailored to each member state's needs.
Pierrakakis emphasized that eurozone countries are ready to use the policy “toolbox” created after the war in Ukraine to address the energy crisis.
Under close monitoring
Speaking to Kathimerini, Energy, Commerce and Industry Minister Michalis Damianou said authorities are closely monitoring the situation and are considering possible measures. He noted that such discussions always take place during periods of uncertainty. He added that some price increases are already being observed and that developments are being closely evaluated, particularly if the conflict continues for a prolonged period.
“In that case, further increases in certain goods are possible,” he said.
When asked about measures such as price caps, he explained that the government must first determine whether there are uncontrolled price increases or profiteering, and whether the price increases are justified.
“At this moment we do not see such phenomena. Although some increases have been recorded, there is no indication that immediate intervention through a price cap is necessary. The increases observed so far are mainly related to fuel prices. For example, refinery prices have risen in some cases by as much as 50 percent. However, these increases are not necessarily passed on to consumers to the same extent,” the minister said.
He noted that in other countries, such as Greece, measures like price caps are used mainly when clear cases of profiteering are identified. “At this stage, such a situation does not appear to exist in Cyprus,” he added.
However, Damianou stressed that if price increases continue in the coming weeks and begin to affect the market or consumers, a price cap remains an available option.
“This issue is already under review in cooperation with the Ministry of Finance,” he said.
At the same time, discussions are ongoing with importers, suppliers, and professional associations to ensure coordination and prevent unjustified price increases.
No price cap for now
Konstantinos Karagiorgis, director of the Consumer Protection Service at the Ministry of Energy, also told Kathimerini that a price cap on fuel is not justified at this stage.
He noted that Cyprus imposed a fuel price cap only once, in 2010, and that the measure lasted only briefly before being withdrawn within about 24 hours.
When asked about current fuel prices, he said price caps are applied only in extreme cases, when companies sell fuel at prices far above what market conditions justify.
“At the moment we are seeing an increase of about 7 to 10 cents, which is relatively modest compared with previous years. This is because refinery prices have risen by about 50 percent due to higher transportation costs, particularly marine insurance costs,” he said.
