Escalating increases in fuel prices in the Cypriot market in the coming weeks are expected following the significant increase recorded in recent days in the global price of oil, the President of the Pancyprian Association of Gas Station Owners, Savvas Prokopiou, told CNA.
As he mentioned, in recent days there has been a sharp increase in the price of crude oil on international markets. "Until Friday evening, the barrel was trading at around $93, while it opened today at around $115, reached up to $117 and then fell to around $107," he noted.
According to Mr. Prokopiou, this development is expected to affect the Cypriot fuel market, with the increases gradually passing to the retail price. As he said, a first small increase of approximately two cents per liter was recorded already last week.
"I believe that this week there will be other increases, while for the next two to three weeks we expect gradual increases," he added, noting that experience shows that when increases are recorded in the international price of oil, these are passed on to the retail market in successive stages.
The President of the Association stated that the course of prices depends on various factors that influence the market, pointing out that a more detailed picture is available from fuel importing companies as well as the Consumer Protection Service of the Ministry of Energy, Commerce and Industry.
As he explained, the first increases in international prices had begun due to fears of a potential conflict, while further price increases were subsequently recorded. In particular, last Friday, there was an increase of approximately $10 per barrel in one day.
He added that after the weekend's events and the attacks targeting oil wells and oil tanks, the price of crude oil recorded another dramatic rise.
Asked whether the increases that consumers will see this week will be greater than those of last week, Mr. Prokopiou replied that "based on experience, I think they will be higher."
However, he noted that it is difficult to make an accurate prediction of the amount of increases, as in times of geopolitical tension, market conditions change rapidly. He said that similar phenomena were observed in 2022 with the start of the war between Russia and Ukraine.
In conclusion, he expressed hope that there will be a quick de-escalation of the conflicts, so that the situation in international energy markets will normalize.
Source: KYPE
