cyprus fuel — Cyprus fuel stocks remain stable despite concerns surrounding the Persian Gulf energy crunch, according to reports. George Papanastasiou, a former energy minister, emphasised that while the current situation is secure, it is essential to remain vigilant as circumstances can shift rapidly.
Cyprus fuel: Current Fuel Stock Status
At present, Cyprus does not face any immediate issues regarding its fuel reserves, as confirmed by the Cyprus Mail. Papanastasiou stated, “Right now we are fine, but it’s only a snapshot, things can change from one day to the next.” This sentiment reflects the volatile nature of global energy supply, particularly with 20 per cent of the world’s oil consumption passing through the Strait of Hormuz, which is currently affected by geopolitical tensions.
Strategic Reserves Requirement
Under EU regulations, Cyprus is mandated to maintain strategic oil reserves that correspond to 90 days of consumption based on previous year’s data. Papanastasiou, who has held significant roles in the energy sector, explained that these reserves are crucial for ensuring energy security during crises. The majority of these reserves are managed by the Organisation for Storage and Management of Oil Stocks (Kodap), with a focus on keeping stock both physically in Cyprus and through financial agreements known as ‘tickets’.
The Role of Tickets in Oil Reserves
Tickets are contractual agreements that allow fuel suppliers to reserve a specified amount of oil on behalf of buyers, providing a financial mechanism for meeting emergency stock obligations without the need for physical storage. This system allows Cyprus to access and purchase oil during emergencies, ensuring the country has a safety net in place.
Composition of Cyprus’ Strategic Reserves
Papanastasiou noted that Cyprus’ strategic reserves total approximately 530,000 metric tonnes, comprising unleaded petrol, diesel, and heavy fuel oil. Of this total, around 400,000 metric tonnes are held in Cyprus, while an additional 110,000 tonnes are secured through tickets in EU countries and about 20,000 tonnes of jet fuel and diesel are stored in Greece.
Emergency Releases of Fuel Reserves
In times of crisis, the government has the authority to release part of these reserves. For instance, during the summer of 2025, amid hostilities in Gaza, Israel suspended the export of jet fuel, prompting Papanastasiou, then energy minister, to intervene and release strategic stocks to ensure the aviation sector in Cyprus could operate effectively.
Reliance on External Sources for Fuel
The aviation sector in Cyprus heavily depends on the oil refinery in Haifa for jet fuel. During wartime, however, Israel may halt exports of middle distillates, including jet fuel, prioritising its air force operations. This reliance on external sources can create challenges for Cyprus, particularly if conflicts escalate.
Recent Supply Chain Developments
Recent reports indicate disruptions in fuel shipments from Israel, as seen with a Venezuelan crude cargo that changed course and headed to Greece instead of unloading at the Haifa refinery. This shift is attributed to operational shutdowns at the facility due to safety measures during wartime. The Bazan oil refinery complex in Haifa has also announced flaring, which is expected to increase emissions, following the shutdown of some operations.
Local Fuel Importers’ Perspectives
Private industry, particularly fuel importers in Cyprus, has primarily sourced products from Israel and Greece. Dinos Lefkaritis, executive chairman of Petrolina, reassured that there are currently no supply issues, stating, “We’re OK for the moment. We’ve got enough petroleum products, and more are en route.” This confidence is bolstered by recent shipments arriving from Haifa.
Electricity Authority of Cyprus Preparedness
The Electricity Authority of Cyprus (EAC) has its own trading mechanisms and has made provisions for fuel deliveries for the upcoming month. Should the EAC face shortages, it is prepared to draw from the strategic reserves to maintain operations. Typically, the EAC receives fuel shipments every two to three weeks, ensuring a steady supply for electricity generation.
Monitoring Future Developments
As the situation in the Persian Gulf evolves, the stability of Cyprus’ fuel stocks remains a priority. The interplay of regional conflicts, supply chain dependencies, and regulatory frameworks will continue to shape the energy landscape in Cyprus. Stakeholders in the energy sector are urged to monitor developments closely and consider diversifying their supply sources to mitigate risks associated with reliance on any single supplier.
