Filenews 27 October 2021
At the European Council meeting next December, the issue of energy prices will be discussed and possibly taken, as emerged from yesterday's extraordinary meeting in Luxembourg of the Energy Ministers of the European Union.
Energy ministers agreed to take stock of the evolution of energy prices in December. The Energy Council will prepare the ground for the December European Council, where EU leaders will return to the issue of energy prices.
In her speech, the Minister of Energy, Natasha Pilidou, expressed concern about the unexpected rise in energy prices, which inevitably caused doubts and in some cases, strong reactions from both citizens and governments, about the current EU policies and the measures for a green transition. Ms Pilidou said that this moment should be an important lesson for all and that regardless of the policies decided at EU level, vulnerable consumers and small businesses should be properly protected from price increases, regardless of the reasons for them. Mrs. Pilidou presented the measures taken by Cyprus such as the reduction of network charges, which will lead to a 10% reduction in the electricity price from November 2021 to February 2022, the provision of financial assistance to vulnerable consumers for the replacement of old electrical appliances (such as refrigerators, air conditioners, washing machines), the installation of photovoltaic systems and the energy upgrade of their buildings. In addition, the Minister of Energy referred to the adoption of virtual net-metering for residential consumers and farmers, as well as to the major information campaign that will be held for energy saving and energy efficiency of buildings and their benefits in energy costs.
Of great interest to the Cypriot consumer are the weekly data published by the European Commission on the average retail prices of petroleum products (oil bulletin), which are in force in the 27 Member States of the European Union. The data shall be published every Thursday and shall relate to the prices in force on Mondays of the same week. The data released on October 21, 2021 related to post-tax sales prices on Monday, October 18, 2021. In Cyprus, the average selling price of unleaded 95-octane petrol reached €1.333 per litre, well below the EU and Eurozone average, where gasoline is sold for €1.632 and €1.689 respectively. Diesel in the Cypriot market was sold at petrol stations at an average of €1.397 per litre, while in the 27 EU Member States it reached €1.50 and in the 19 countries of the Eurozone it exceeded €1.51.
The average selling price of heating oil in the Cypriot market, as of 18 October 2021, stood at €0.916, while the average in the EU and the Eurozone amounted to €0.952 and €0.940 respectively.
The Government monitors the developments and according to competent sources all the necessary measures are taken so that there are no cases of profiteering or exploitation of consumers. The economy is dependent on oil and fluctuations in black gold prices affect the market. In shaping the price of transport fuels in Cyprus, an important role is played by the taxation imposed on fuel, which constitutes about half of the retail selling price.
The unprecedented energy price revaluations are of concern to the world and all the countries of the world are studying ways of dealing with the situation. The increase in energy prices was also discussed at the European Union Summit on 21 and 22 October.
Saudi Aramco announced yesterday that oil production capacity around the world is rapidly declining and has called on companies to invest more in the production of "black gold".
There is "huge concern", Aramco's chief executive Amin Nasser said in an interview with Riyadh, the Capital of Saudi Arabia, and added "excess capacity is shrinking".
Nasser expressed his fears as crude prices have soared 70% this year to about $85 a barrel.
Countries with high consumption, including the US, Japan and India, have already asked producers to pump more oil.
The supply shortfall in oil markets could worsen in 2022 if the coronavirus pandemic subsides and more people start travelling by air again.
"If there is a recovery in aviation next year, this overcapacity will be exhausted, "he said. "Now we are close to a situation where there is limited supply, the surplus is falling rapidly."
International oil prices are at their highest levels in seven years with the cost of U.S. crude having risen by 70% this year to over $80 a barrel. High prices are part of the global energy crisis, which is affecting all types of fuels, including gas and coal.
