Newsroom
After months of watching fuel prices climb, Cypriot drivers are finally getting some welcome relief at the pump.
Fuel prices have been steadily falling throughout June, and officials say further reductions could be on the way as tensions in the Middle East ease following a recent agreement between the United States and Iran.
According to the Consumer Protection Service, the average price of unleaded 95 petrol has dropped by 6.5 cents per litre since the start of June, while diesel has fallen by 10.8 cents per litre. Heating oil prices have remained largely unchanged.
For many households and businesses, the declines are a welcome break after a period that saw fuel costs surge amid fears that the conflict involving Iran could disrupt global oil supplies.
"People notice fuel prices almost immediately," said Consumer Protection Service Director Konstantinos Karagiorgis. "Whether you're driving to work, taking the children to school, running a business or filling up for a weekend trip, it affects almost everyone."
He said the recent US-Iran agreement helped calm international markets, leading to lower crude oil and refinery prices.
"The situation appears to be normalizing," he said, adding that the positive trend is expected to gradually filter through not only to fuel prices but also to the wider supply chain.
Still higher than before the conflict
Despite the recent drop, fuel prices remain well above where they were before tensions flared in the region.
According to official figures, compared with the period before the US-Iran conflict, unleaded petrol is still about 23 cents per litre higher, diesel is up more than 28 cents, and heating oil remains over 44 cents higher.
Karagiorgis cautioned that a full return to pre-conflict prices will not happen overnight.
The conflict affected not only market confidence but also infrastructure in oil-producing countries, meaning production and supply chains may take time to fully recover.
What happens after June 30?
Another question hanging over motorists is whether the government will extend the reduced excise tax on fuel, a measure introduced to help soften the blow of rising prices.
The tax reduction is due to expire on June 30, and no final decision has yet been announced.
The Consumer Protection Service said it continues to provide daily updates to the Ministry of Finance on fuel price trends, but the decision on whether to extend the measure rests with the ministry.
For drivers, that decision could make a noticeable difference.
Savvas Prokopiou, president of the Pancyprian Association of Petrol Station Owners, said more price reductions are likely in the coming days but warned that international oil prices remain higher than many had expected after the US-Iran agreement.
He also argued that the reduced fuel tax should remain in place for a little longer.
"If the measure ends, consumers could suddenly see prices jump by around 8 cents per liter, just as they are beginning to enjoy lower prices," he said.
Why it matters
Fuel prices don't just affect what drivers pay at the pump. They influence the cost of transporting goods, running businesses, and even household expenses.
For many Cypriots still feeling the pressure of the cost-of-living crisis, every cent matters.
