Fuel prices are expected to decline further as a result of a preliminary agreement between the United States and Iran, according to the energy ministry. This development has prompted optimism among consumers and industry experts alike.
Consumer protection service director Constantinos Karagiorgis noted, “There was a de-escalation in both crude oil prices and refinery prices,” highlighting the positive impact of the agreement on the market. Recent ministry data shows that the average price of unleaded 95 petrol has dropped by 6.5 cents per litre this month, while diesel prices have fallen by approximately 10.8 cents per litre.
Despite these recent reductions, fuel prices remain significantly elevated compared to pre-conflict levels. Specifically, the average price of unleaded 95 petrol has risen by 23.2 cents per litre since June 19, with diesel prices up by 28.3 cents and heating oil by 44.2 cents. Heating oil prices have stabilised since June, but the impact of the conflict is still being felt across the board.
Karagiorgis expressed a hopeful outlook, suggesting that, “It appears that, gradually, not only in fuel prices but across the entire supply chain, normality will be restored.” However, he cautioned that the earlier price hikes were substantial and that a return to pre-conflict pricing may take time.
“In addition to prices, infrastructure in oil-producing countries has also been affected, which means production may take some time to return to previous levels,” he added, indicating that market recovery will not be instantaneous.
On the subject of the reduced excise duty on liquid fuels, which is set to expire on June 30, Karagiorgis noted that this matter falls under the finance ministry’s purview. He assured that his ministry remains in close contact with the finance department, receiving daily updates on fuel price trends.
Further insights came from Savvas Prokopiou, chairman of the petrol station owners’ association, who confirmed that additional price reductions are anticipated. He pointed out a concerning stabilisation in international oil prices, currently hovering around $78 to $80 per barrel. “Under normal circumstances, prices should have moved lower almost a week after the US-Iran agreement,” he said.
Prokopiou expressed hope for more reductions in the coming days and reiterated support for extending the fuel subsidy set to expire on June 30. He argued that an extension would facilitate a smoother transition and help prevent a sudden increase in prices by more than eight cents per litre.
