Gasoline and diesel prices expected to drop

Reductions of up to 3 cents are expected to be observed in the retail prices of unleaded gasoline (95 octanes) and diesel fuel in the coming days, according to the Director of Consumer Protection Service at the Ministry of Energy, Commerce, and Industry, Konstantinos Karagiorgis, as reported by the Cyprus News Agency (CNA).

"It is expected that in the next few days, either within the current week or at the beginning of the following week, there will be a reduction in prices of up to 3 cents," said Mr. Karagiorgis, expressing hope that "the downward trend that seems to have been present for the past year in international fuel prices will continue."

"The indications we have for the near future, according to the Director of the Consumer Protection Service, suggest that the prices of unleaded gasoline (95 octane) and diesel fuel are expected to decrease by up to 3 cents, which may offset part of the recent increases we have experienced due to the reintroduction of the relevant tax on fuels," he added.

Regarding the future trajectory of fuel prices, Mr. Karagiorgis mentioned unpredictable factors such as reductions in oil production, stating that "we do not know how the situation will unfold in the coming period."

"At this stage, the direction of fuel prices will be downward in the next few days, up to 3 cents," he noted.

When asked about the source of the indications for price reductions, Mr. Karagiorgis stated that the Consumer Protection Service monitors the prices at which petroleum companies make their purchases, and these prices "are on a downward trend, which is reflected with some delay" until the shipments arrive and new fuels enter the market.

Furthermore, in a statement to CNA, the President of the Association of Petrol Station Owners, Savvas Prokopiou, said, "Our prediction is that there should be a slight temporary decrease because, in the past 15 to 20 days, prices have fallen in the international markets." However, he added that in the past few days, prices have been increasing.

"If the trend of the past 15 to 20 days continues, as we have been told, then we expect a decrease of at least 2 to 3 cents," he stated, also mentioning that "we follow whatever prices are sent to us wholesale."

He mentioned that one company has already reduced its prices by 1 cent today, and other companies are expected to follow suit.

Zero VAT Impact
Additionally, Mr. Karagiorgis stated that the measure of zero VAT (Value Added Tax) applied to seven key product categories, implemented by the government on May 5, 2023, has had a positive impact.

He added that after the removal of VAT, it had been observed that prices have remained at 86% as reduced, according to a sampling check conducted by the Consumer Protection Service on 65 products from 9 supermarkets at 58 locations in Cyprus.

"The supermarkets have not increased the prices of these specific products," he added.

The Director of the Consumer Protection Service mentioned that these specific 9 supermarkets were selected because they cater to 80% of consumers.

[This article was translated from its Greek original]