Newsroom
Another jump in fuel prices appears inevitable for Cyprus, the head of the island’s gas station association warned Thursday, as global tensions continue to push energy costs higher.
Savvas Prokopiou, President of the Cyprus Association of Gas Station Owners, told CNA that prices have already been climbing in recent weeks and could increase by another 5 to 6 cents per liter in the near future. “We see that increases are being imposed every two to three days,” he said, describing the situation as unpredictable.
Fuel supply remains stable
Despite the price pressures, Prokopiou reassured consumers that Cyprus has sufficient fuel reserves, estimated at around 90 days’ supply. “If there is an issue, it will be for many countries, not just Cyprus,” he said, adding that the island has never faced shortages in the past.
Officials from the Consumer Protection Service are working closely with fuel importing companies to monitor price fluctuations and prevent profiteering. Prokopiou stressed that gas station owners themselves have not engaged in overcharging and that any isolated spikes have been short-lived.
Government support and price caps
Prokopiou said the most effective government action would be targeted fuel subsidies, similar to measures applied in 2022, rather than price caps. Past attempts to impose a ceiling on retail prices failed within 24 hours, he noted, arguing that any price control must start at the wholesale level to be effective.
He also pointed out that the state benefits from rising fuel prices through increased VAT revenues. “When the price increases, the state makes some money, so it should partially subsidize fuel,” he said.
Broader impact on the economy
The association president warned that continued fuel price increases could ripple through other parts of the economy. “If this situation continues and prices go even higher, then we will see price increases in many products,” he said, noting that some items may never return to their previous price levels even after fuel costs stabilize.
