Consumers are being warned to brace themselves for steep price hikes as fuel and electricity costs continue to rise. The Cyprus Consumers Association has called for the government to reinstate fuel subsidies in light of noticeable increases at the pump that have persisted since early March.
- With the ripple effects of these price hikes already being felt, consumers in Cyprus are left to navigate an increasingly challenging economic landscape.
Since March 1, prices have surged significantly: 95-octane petrol has risen by 10.7 cents per litre, diesel by 16.7 cents, and heating oil by 13.6 cents. Currently, petrol is priced at €1.422 per litre, just below the €1.443 recorded when the fuel subsidy was first introduced on March 7, 2022. Diesel is now €1.58 per litre, a notable increase from €1.501 in 2022, while heating oil has reached €1.086, surpassing the previous year’s figures by approximately six cents.
The Cyprus Consumers Association warns that further increases are anticipated this week and possibly next week, with current prices nearing or exceeding those recorded when the subsidy was initially implemented. The Consumer Price Index has also risen from 107 units in March 2022 to 117, compounding financial pressure on households.
In a related development, the Electricity Authority of Cyprus (EAC) has indicated that electricity bills are likely to rise in May, following the arrival of a more expensive fuel shipment. EAC chairman Giorgos Petrou noted the need to mitigate the impact of rising fuel costs on electricity bills, suggesting a potential increase of 5 to 10 per cent on fuel prices, though he clarified that this would not directly translate to an equivalent rise in final electricity bills.
Petrou explained that the EAC intends to blend the new shipment’s prices with existing stocks to soften the financial burden on consumers. He acknowledged the challenges posed by the ongoing conflict at the Strait of Hormuz, a critical route for oil supply, and emphasised the necessity of maintaining full fuel reserves to avoid additional price spikes.
Energy expert Charles Ellinas warned of broader economic implications as the war has disrupted global oil supply chains. He predicted that Cyprus would experience significant price increases across diesel, petrol, and electricity, affecting virtually all sectors. Ellinas urged the government to consider implementing a price cap on fuel to alleviate pressure on consumers.
As the situation unfolds, international oil prices remain volatile. Brent crude was trading around $101 a barrel, with recent developments suggesting that the US may begin tapping into its strategic reserves to stabilise the market. However, Ellinas cautioned that prices could potentially rise to $200 per barrel if the current conflicts escalate further.
With the ripple effects of these price hikes already being felt, consumers in Cyprus are left to navigate an increasingly challenging economic landscape.
