Gas station owners are expecting a sharp increase in fuel prices, as Savvas Prokopiou, President of the Gas Station Owners Association, told CNA.
Asked whether we will see fuel price increases in Cyprus after the significant increase in the international oil price, due to Israel's attack on Iran, Mr. Prokopiou said that "unfortunately there is expected to be an increase" and added that "this time the increases will be a bit steep since within two 24-hour periods it went up by $10 per barrel."
"Increases logically take 10-15 days from the moment the price of a barrel increases worldwide," he added.
But beyond that, he continued, "the competent Ministry of Energy and the importing companies know better when they receive their loads, when the increases come in."
Mr. Prokopiou said that gas station owners, "we simply follow the prices."
Moreover, economist Tasos Giasemidis said that the new confrontation between Iran and Israel is bringing a new wave of volatility to the markets and in general to the international markets, with the price of oil being one of the first to be affected. "This at a time when its price had decreased significantly and while oil-producing countries had announced an increase in oil production and supply," he added.
According to Mr. Giasemidis, "the intensity and magnitude of the consequences will depend on the length of time the confrontation continues and the size of the military operations."
He mentioned that Iran, according to statements from Israel and the US, continues to concern the international community, both because of its nuclear program and because of its involvement in military conflicts through paramilitary groups.
"The fear of an unforeseen conflict in the region is maintaining increased demand for safe-haven assets – with gold leading the way," he added.
Indicatively, Mr. Giasemidis said that the gold market has strengthened significantly in regions such as the Middle East and Asia, as a means of protection against possible political unrest and currency destabilization.
Source: KYPE
