FUEL RALLY IN PARLIAMENT - INCREASES ARE A ROCKET, REDUCTIONS A FEATHER - EAC A TEMPORARY BREATHER IN APRIL, PRICES WILL RISE IN MAY - Filenews 31/3 by Angelos Nikolaou
The gap between international prices and the speed of adjustment of the domestic market was at the heart of the meeting of the parliamentary Committee on Trade. The committee examined, in an atmosphere of intense concern and under the weight of the social outcry over the continued increases in fuel prices, the knock-on effects on the economy and households, while clarifications were given on the country's strategic reserves.
Of particular interest was the position of the EAC representative, who explained that the effect of international increases on electricity is lagging in time due to existing reserves.
As he mentioned, a decrease in fuel prices is expected in April of 5.5% compared to March, as a result of the reduction in VAT and the change in the fuel mix.
This reduction, he added, is expected to evaporate immediately. From May, the price of electricity will rise again.
He added that the EAC bought 1 million emission allowances at a lower price, currently maintaining a stock of 900.000 units, while proceeding with a pre-purchase of 66.000 tons of fuel for the second half of 2025.
On behalf of Petrolina, Dinos Lefkaritis categorically rejected the criticisms of profiteering, describing in dramatic tones the pressure the industry is under.
He underlined that companies operate with extremely low profit margins. "We have a turnover of 500 million with a profit of only 6 million a year. Our profit is only 1% of our turnover," he said, adding that the companies are under the constant control of the EPA.
Mr. Lefkaritis noted that the increases were unpredictable and the import of products, especially from Israel, is now a feat due to the exorbitant fares and insurance premiums.
He said that in Greece prices are much higher and that, based on international data, gasoline in Cyprus should reach €2 per liter, while it remains at €1.65.
Wanting to emphasize the unfavourable position of companies towards public opinion and economic conditions, he said: "Oil companies are in the thick of it."
The representative of KODAP appeared reassuring, assuring that Cyprus is shielded in case of emergency with strategic reserves of 90 days (542,000 metric tons). Of these, 215,000 tons are within Cyprus, while 30,000 tons are stored in Greece. However, Mr. Lefkaritis warned that if the situation continues, the country may need to strengthen its reserves from other sources as well.
The MPs conveyed the despair of the citizens. AKEL MP Kostas Costas AKEL complained that fuel prices are rising like a "rocket" and falling like a "feather", pointing out at the same time that the LPG cylinder reached €25, leading households to despair.
The president of the Committee, Kyriakos Hatzigiannis, spoke of a "hostile trend" in the market, while Ilias Myrianthous of EDEK referred to the intense social outcry.
The director of the Consumer Protection Service, Konstantinos Karagiorgis, attributed the problem to the explosion of international indices. Since the end of February 2026, he said, the Platts index for diesel jumped to +89%, heating oil increased +88%, and unleaded 95 increased by 52%.
Nevertheless, he argued that the increases in Cyprus (18% in gasoline) are proportionally lower than the international increases, while he justified the price of LPG due to the increase in butane by 77%.
While the Ministry of Finance awaits the new inflation data next Thursday, the president of the Fiscal Council, Michalis Persianis, pointed out that relief measures are necessary, as economic policy is often not sufficient to cover such shocks.
The Consumers' Association, however, warned that the real picture will be seen in the coming months with even greater burdens.
