Cyprus petroleum sales decline as fuel prices remain elevated

Cyprus fuel market adjusts after Middle East price surgeCyprus’ petroleum product sales fell sharply in June, according to figures by the state statistical service (Cystat), as the island’s fuel market continued to adjust to the lingering effects of higher prices and geopolitical uncertainty following the conflict in the Middle East. The statistical service reported that total petroleum product sales reached 129,479 tonnes in June 2026, representing an 8.0 per cent decline compared with the same month last year. The figures come as Cyprus continues to experience one of the highest annual increases in fuel prices in the European Union, despite retail prices easing in recent weeks from the peaks triggered by tensions between Israel and Iran. According to Eurostat, the price of fuels and lubricants for personal transport in Cyprus was 18.6 per cent higher in June 2026 than a year earlier, placing the island among the countries recording the steepest annual increases in the bloc. Across the EU, fuel and lubricant prices rose 13.7 per cent year on year in June, following even stronger increases of 20.8 per cent in April and 20.7 per cent in May. Although fuel prices remained higher than a year earlier across every member state, the pace of annual price growth slowed in June. Bulgaria recorded the highest annual increase at 26.0 per cent, followed by Lithuania at 23.5 per cent, Romania at 23.1 per cent, Finland at 22.0 per cent and Luxembourg at 20.7 per cent. Cyprus ranked among the countries experiencing the strongest annual increases, while Hungary recorded the smallest rise at 2.3 per cent, followed by Poland at 5.8 per cent. Among the remaining EU countries, annual increases ranged from 7.9 per cent in Spain to 18.6 per cent in Cyprus. In this context, the statistical service’s latest report showed declines across most categories of petroleum products sold in Cyprus during June. The largest falls were recorded in kerosene sales, which plunged 51.0 per cent, followed by light fuel oil, down 44.2 per cent. Sales of heating gasoil declined by 16.8 per cent, while marine gasoil provisions fell 14.1 per cent and aviation kerosene provisions dropped 13.7 per cent. Sales of asphalt decreased by 12.2 per cent, while road diesel sales edged down 2.4 per cent compared with June 2025. The only major categories to register increases were heavy fuel oil, which surged 74.8 per cent, and motor gasoline, which rose 1.8 per cent. Sales through filling stations specifically amounted to 59,271 tonnes, representing a 1.4 per cent annual decline. Despite the weaker annual performance, the market showed signs of recovery compared with the previous month. Total petroleum product sales increased 1.5 per cent in June compared with May. Cystat said this monthly improvement was driven by a 6.1 per cent increase in aviation kerosene provisions, a 5.9 per cent rise in marine gasoil provisions, a 5.6 per cent increase in road diesel sales and a 4.5 per cent rise in motor gasoline sales. Meanwhile, petroleum stocks at the end of June fell by 19.6 per cent compared with the end of May. Looking at the first half of the year as a whole, however, the market remained broadly resilient. During the January to June 2026 period, total petroleum product sales increased 1.2 per cent compared with the corresponding period of 2025. Although annual fuel inflation remained elevated in June, Eurostat said prices actually declined across much of Europe on a monthly basis. Compared with May, diesel prices fell by 6.4 per cent across the EU, while petrol prices declined by 4.2 per cent. Diesel prices decreased in every EU member state between May and June. The largest monthly falls in diesel prices were recorded in the Czech Republic, where they dropped 11.3 per cent, followed by Poland at 9.7 per cent and Bulgaria at 9.4 per cent. The smallest declines were seen in Hungary at 0.6 per cent, Italy at 1.4 per cent and Slovenia at 1.6 per cent. For petrol, Cyprus and Italy were the only EU countries to record monthly price increases, with prices rising 0.7 per cent and 0.5 per cent respectively. Elsewhere, all other member states registered monthly declines, led by Sweden at 7.8 per cent, Belgium at 7.0 per cent and Poland at 6.6 per cent. Earlier this month, Consumer Protection Service director Constantinos Karayiorkis said retail fuel prices had been falling steadily but remained above the levels seen before tensions escalated in the Middle East. “We cannot make reliable predictions about the future course of fuel prices,” Karayiorkis said. “We hope calm will prevail so prices can return to the relatively low levels seen before the conflict,” he added. Karayiorkis explained that retail fuel prices in Cyprus typically lag international oil market movements because imported fuel generally takes around ten days to reach the island. He also said relatively low refinery prices in recent weeks had supported the decline in retail fuel prices. At the same time, Cyprus has joined nine other EU member states in urging the European Commission to reconsider the planned ETS2 carbon pricing system for transport and heating fuels, currently scheduled to take effect in 2028. Cyprus, Greece, Bulgaria, Italy, Poland, the Czech Republic, Estonia, Hungary, Romania and Slovakia argued that the measure should be reassessed as part of the forthcoming revision of the EU emissions trading system. “European citizens should not be facing new climate taxes in current economic and geopolitical circumstances,” the ten countries said in a joint statement. “ETS2 should therefore be addressed directly in the revision and carefully reconsidered,” they added. While the European Union has already delayed the introduction of the new carbon pricing mechanism by one year, supporters maintain that it will encourage cleaner transport and heating systems while generating funding to help households finance the transition.