FUEL DEMAND IN CYPRUS SKYROCKETED BY 30% - INCREASES OF 6-7 CENTS PER LITRE ARE COMING WITH NEXT DELIVERIES, GAS STATION OWNERS SAY - Filenews 4/3 by Vassos Vassiliou
An increase of more than 30% was recorded on Monday, March 2, in the demand for fuel, not only for the supply of vehicles but also for heating purposes, and according to the estimates of the gas station owners, the price of the next loads will gradually increase around 6-7 cents per liter, although everything will depend on the outcome of the war between the United States and Israel on the one hand and Iran on the other.
This was reported to Filenews by the president of the Pancyprian Association of Gas Station Owners, Mr. Savvas Prokopiou, who clarified that Monday's 30% increase did not continue on Tuesday, showing some downturn, while by the end of today the further trend will be seen.
It is noted that especially for heating oil, demand was considered unexpected for the season, in the sense that we have already entered March, when demand is usually limited given that Winter leaves us and temperatures rise. As the president of the gas station owners observed, under normal conditions (non-war) there would not be such a high demand.
Mr. Prokopiou expresses the view that the increase in demand does not only have an economic aspect but also touches on the psychology that is usually created in times of conflict. However, as he mentioned, when the war between Russia and Ukraine broke out, both the demand and the increase in fuel prices were more than today.
Mr. Prokopiou estimates that as the days go by, demand will decrease.
Regarding prices, he said that an oil company has already increased prices from today by one and a half cents, although the differentiation has not yet been seen at the gas stations, which, based on the practice followed, is expected to be recorded after two days. According to Mr. Prokopiou, increases from other companies will follow.
Regarding the next period, Mr. Prokopiou said that 60 days before the conflict, there was an increase in oil worldwide. In addition to this, as far as oil is concerned, last Saturday (after the conflict between the US-Israel and Iran) followed a 15% increase in the price of a barrel. The president of the gas station owners clarified that the increase in fuel will not be 15% but less, in the sense that other factors that affect the price of fuel (such as the tax) are stable.
When we asked Mr. Prokopiou to estimate how much the price of fuel can increase, he said that in the next 2-3 loads it is estimated that there will be an increase of 6-7 cents per liter. My opinion is expressed based on the experience so far, in similar cases, and does not mean that this will be exactly the increase, he said.
He reiterated that everything will be judged by how the war develops and added that if the price of oil does not exceed $90 per barrel, the increases will not exceed estimates.
