**Fuel Prices on the Rise, Despite Assurances from Officials**
Fuel prices in Cyprus have reached concerning levels, with petrol averaging €1.7 per litre and diesel exceeding €2 per litre. The head of the consumer protection service, Constantinos Karayiorgis, expressed a lack of optimism regarding future price trends, attributing the situation to ongoing geopolitical tensions in the region. He noted that shipments of more expensive fuel continue to arrive, complicating the outlook for consumers.
In comments to the Cyprus News Agency, Karayiorgis stated, “We cannot predict what will happen in the future; however, we cannot say the forecast is optimistic, given the continuous increases of refinery prices.” He emphasized the hope for a resolution to regional disputes that could stabilize the situation.
In response to the rising fuel costs, Finance Minister Makis Keravnos indicated that the government is actively monitoring the situation and preparing measures to address the issue. He plans to present recommendations to the cabinet on September 30, although he cautioned that final decisions have yet to be made. Keravnos reassured the public that the government is considering additional measures to mitigate the impact of soaring fuel prices.
Keravnos also addressed concerns about alarmism regarding the rising costs, asserting that Cyprus is faring better than many other EU nations in terms of fuel pricing. He cited Eurostat data indicating that Cyprus experienced one of the sharpest monthly increases in petrol prices within the EU in August. Despite the increases, he claimed that Cyprus ranks as the fifth cheapest country in the EU for petrol, highlighting the government’s previous measures, including a reduction in the special consumption tax by 8.33 cents per litre for both petrol and diesel.
Energy expert Charles Ellinas has projected that diesel prices could rise above €2.20 per litre in the coming months. He also raised concerns about potential supply shortages, which could further exacerbate the situation.
Keravnos reiterated that fuel prices have a direct impact on electricity bills, which subsequently affect basic consumption costs. He noted that while the VAT on electricity cannot be reduced below 5% due to European regulations, the government has taken steps to alleviate some of the financial burdens on consumers. He dismissed claims of double taxation on electricity, explaining that these concerns have been discussed with the European Commission without any alternative solutions being proposed.
Despite opposition criticisms regarding the government's handling of the situation, Keravnos maintained that the Cypriot economy remains robust, even amid regional tensions. He emphasized that the government’s measures have helped keep prices at a relatively reasonable level compared to potential costs without intervention.
As of Wednesday, fuel prices in Cyprus were reported as follows: unleaded 95 petrol averaged €1.7 per litre, with prices ranging from €1.59 to €1.78; unleaded 98 petrol averaged €1.76 per litre, with a range of €1.64 to €1.97; diesel for vehicles averaged €1.97 per litre, ranging from €1.86 to €2.07; kerosene averaged €1.48 per litre, with prices from €1.22 to €1.64; and diesel for heating averaged €1.58 per litre, ranging from €1.48 to €1.69.
As the government prepares to address the rising fuel prices, consumers are left to navigate the immediate impacts on their budgets, with the hope that future measures will provide some relief in an increasingly challenging economic environment.