REDUCTIONS IN FUEL PRICES ARE COMING - Filenews 10/4 by Angelos Nikolaou
For the first time in six weeks of war, international prices of refined products (Platts) are down.
This development creates expectations that the next loads that will arrive in Cyprus will be cheaper, offering the much-desired de-escalation in pump prices.
After a prolonged rally of increases, the Platts Basis Italy index, which is the pricing basis for fuels imported by Cyprus, recorded a significant decline.
Indicatively, while the price of Brent crude oil is now below the psychological threshold of $100 per barrel, the change in Platts prices has been significantly limited.
In unleaded 95 octane the increase since the start of the war has deflated from 57% to 41%. Furthermore, in diesel it has fallen from explosive 116% to 75%.
Despite the 8.3 cents per liter reduction in consumption tax implemented last Saturday, consumers did not see the full benefit in their pockets.
The actual average decrease was 7.9 cents for gasoline and 7.6 cents for diesel.
"Prices have decreased, but due to the continuous increases in new loads, average prices have decreased to a lesser extent," explained the director of the Consumer Protection Service, Konstantinos Karagiorgis, clarifying that state intervention through taxation has exhausted its margins.
Today, the average price of 95 petrol is €1,520 per litre, with the price at the stations ranging from €1,444 to €1,599.
The average price of diesel is €1,843 per liter and ranges from €1,747 to €1,899.
Despite the burdens, Cyprus maintains one of the most competitive markets in Europe.
According to the weekly fuel price overview bulletin (April 6) in gasoline 95, Cyprus is the 3rd cheapest country in the EU after Bulgaria and Malta, while in diesel it is in 5th place behind Malta, Bulgaria, Slovenia and Slovakia.
The gradual imposition of increases by companies in Cyprus is considered the main reason why prices did not skyrocket instantly.
"A company may have an increase of 25 cents in its load, but it implements it gradually, 5 cents a day," noted Mr. Karagiorgis.
The Consumer Protection Service monitors import prices, stocks and exchange rates on a daily basis.
So far, the increases are justified and documented by the cost of the cargo.
However, the message to the market is clear from Mr. Karagiorgis that in case of unjustified increases or distortions, immediate measures will be taken.
Consumers are invited to take advantage of the Retail Price Observatory, as the discrepancy between the cheapest and the most expensive gas station even reaches 15 cents per liter.
