**Fuel Prices Expected to Fall Further Following US-Iran Agreement**
In a promising development for consumers, the Cypriot Energy Ministry announced on Monday that a preliminary agreement between the United States and Iran is anticipated to contribute to further reductions in fuel prices. This news comes as a welcome relief after a period of significant price increases in the wake of geopolitical tensions.
Constantinos Karagiorgis, the director of the Consumer Protection Service, highlighted that there has been a notable de-escalation in both crude oil and refinery prices. According to the latest data from the ministry, the average price of unleaded 95 petrol has decreased by 6.5 cents per litre this month, while diesel prices have seen a more substantial drop of approximately 10.8 cents per litre.
Despite these recent declines, fuel prices in Cyprus remain markedly higher than they were prior to the outbreak of hostilities in the region. When comparing current prices to those recorded before the conflict began and up until June 19, the average price of unleaded 95 petrol has risen by 23.2 cents per litre. Similarly, diesel prices have increased by 28.3 cents, and heating oil has surged by 44.2 cents. Interestingly, heating oil prices have stabilized since June, suggesting a potential leveling off in that segment of the market.
Karagiorgis expressed optimism about the future, stating, "It appears that, gradually, not only in fuel prices but across the entire supply chain, normality will be restored." However, he cautioned that while prices are expected to continue their downward trend, the earlier increases were significant, and it may take time for prices to revert to pre-conflict levels. He also pointed out that the infrastructure in oil-producing countries has been affected, which could delay the return of production to previous levels.
In discussions regarding the reduced excise duty on liquid fuels, which is set to expire on June 30, Karagiorgis noted that this issue falls under the jurisdiction of the finance ministry. He assured that communication between the ministries remains strong, with daily updates being exchanged concerning fuel price trends.
Savvas Prokopiou, chairman of the Petrol Station Owners’ Association, echoed the sentiment of further price reductions. He remarked on the concerning stabilization of international oil prices, which are currently hovering around $78 to $80 per barrel. Prokopiou indicated that under normal circumstances, prices should have dropped significantly following the US-Iran agreement, suggesting that the market may be reacting differently than expected.
Prokopiou also advocated for the extension of the fuel subsidy that is set to expire at the end of June. He argued that prolonging this subsidy would facilitate a smoother transition for consumers and help prevent a sudden spike in prices exceeding eight cents per litre.
As the situation continues to evolve, both the Energy Ministry and industry stakeholders remain vigilant in monitoring fuel price trends. The anticipated reductions could provide much-needed relief for consumers, but the lingering effects of previous price hikes and geopolitical instability will likely continue to shape the market in the near future.