Fuel companies announce significant price hikes

Looking at the average prices across Cyprus, we found that the average price of unleaded 95 petrol increased yesterday afternoon, Tuesday, compared to the morning, and now stands at 1.5 euros per liter. The same increase was recorded for diesel, with the average price nationwide now at 1.530 euros per liter (compared to 1.527 euros in the morning). Based on estimations relying on international developments and raw material prices, it is expected that fuel prices will continue to rise, making travel more expensive during the period of mid-August. Mario Drousiotis from the Consumer Protection Association stated that since yesterday, one fuel company has already announced significant increases, amounting to 3.5 cents per liter for unleaded 95, 4.5 cents per liter for diesel, and 6 cents per liter for heating oil. Other companies are expected to follow with similar increases in the coming days.

Compared to June (a period when fuel excise tax was not applied), the difference is approximately 12 cents per liter higher for gasoline and slightly more than 12 cents higher for diesel. The latest weekly fuel price report for June, which covered prices on June 26, showed the average retail price for unleaded 95 at 1.38 euros per liter, diesel at 1.40 euros per liter, and heating oil at 0.972 euros per liter. In the corresponding report for prices on July 24, the price of unleaded 95 rose to 1.47 euros per liter and diesel to 1.5 euros per liter. By the end of the week, the price difference between August and June is estimated to be around 14 cents, considering the reintroduction of fuel excise tax.

According to the President of the Consumer Association, it is anticipated that there may be further price increases in the next 10 days based on international data. However, predicting fuel costs in the future is challenging due to unpredictable factors affecting supply and demand, as well as the volatility of Plat's prices as a financial product. The observed increases in fuel prices in Cyprus are based on reasonable data and formulas applied by the authorities, and no further action is required by the authorities.

Regarding electricity prices, the cost per kilowatt-hour for August will be reduced by 1.8% compared to July, after the government subsidy for electricity was removed in July. An average household consumption for two months will result in a bill of 266 euros. Compared to the same month last year (August 2022), the cost has decreased by 9%, as it was 293 euros for the same consumption. However, compared to June 2023, when the subsidy was in effect, there is a 25% increase in electricity bills, as the cost was 212 euros for the same consumption two months ago. It should be noted that the unusually high temperatures have increased electricity consumption, further burdening the final amount on future bills.

[This article was translated from its Greek original]