Filenews 23 March 2023
Oil prices have risen slightly in the last three weeks, according to data recorded weekly by the Consumer Protection Service. As the competent officer of the Service, Andreas Christou, mentioned, no one can predict how prices will move in the coming period, but a positive parameter in the formation of prices is considered to be the rise of the euro against the dollar.
As Mr. Christou explained, speaking during the period when a very large increase in fuel prices was recorded, last summer, there was the largest devaluation of the euro against the dollar, which negatively affected its market value in the fuel market. Mr. Christou added that contracts for the purchase of fuel are made in dollars, with the result that the devaluation of the euro by 10% last summer, meant an even greater increase in costs.
"In recent months, the euro has been on an upward trend, so its purchasing power is restored", concluded Mr. Christou, noting that even if the difference is a few cents, it will be seen at the pump.
Asked to comment on whether the slight rise in the price of unleaded gasoline in the last three weeks, as well as in the price of heating oil, may foreshadow a new course of rising prices, Mr. Christou replied that no one can know this, nor can any prediction be made about the course of prices in the coming period.
It is noted that in the previous period, according to the data recorded in the weekly bulletins of the Consumer Protection Service, stabilizing trends in fuel prices had begun to form. As the Agency points out, however, the retail prices of petroleum products in Cyprus are influenced by a significant number of factors, including the import price of the products, the stocks of the oil companies at the time of import, the exchange rate of the dollar against the euro, as well as the taxes imposed by the state. Since some of these factors are variable, no predictions can be made.
Mr. Christou recalled, in closing, that in any case consumers are encouraged to take advantage of the price observatory of the Consumer Protection Service, where the stations with the lowest prices are presented, as well as the prices in real time.
