The president of the Association of Service Station Owners (Povek) of Cyprus, Christos Christodoulou, has announced that fuel prices in Cyprus will increase by four to five cents per week until the end of the month. Christodoulou attributes these price increases to the global reduction in oil production, led by Saudi Arabia and Russia, the world’s second and third largest oil producers. These nations are part of the Organization of the Petroleum Exporting Countries (OPEC+), which implemented supply restrictions last year to stabilize the market.
The benchmark Brent crude oil price recently surpassed $90 a barrel for the first time this month after Saudi Arabia and Russia extended their commitment to reduce oil production. The International Energy Agency (IEA) has warned of a significant supply shortage in the fourth quarter of the year due to the loss of OPEC+ production, which means 1.3 million fewer barrels of oil per day.
The upcoming increases in fuel prices will increase the financial burden on the already suffocated population of Cyprus. Marios Drousiotis, president of the Consumers Association, has expressed concern about rising costs, noting that since the removal of fuel subsidies, gasoline prices have already increased by 22 cents per liter. The consumer association is urging the government to intervene and ease financial pressure on consumers.
Despite these concerns, the government has yet to take action to address upcoming increases in fuel prices. The Ministry of Finance says it is assessing the situation and exploring possible solutions to help consumers. Meanwhile, there is a possibility that more consumers will turn to the north of the country to buy fuel, where prices are relatively lower. However, Turkish Cypriot fuel company K-Pet warns that prices in the north could also increase due to the influence of the global fuel market.
In conclusion, Cyprus is bracing for weekly increases in fuel prices as a result of the global reduction in oil production led by Saudi Arabia and Russia. Consumers are feeling the pressure as prices continue to rise, and the government has yet to take decisive action to mitigate the financial burden. As fuel costs soar, some consumers may look to alternative options in the north of the country, but even there prices are expected to rise. The future of fuel prices in Cyprus remains uncertain, but immediate relief for consumers is urgently needed.
Sources:
– Cyprus Mail
– International Energy Agency (IEA)
