No fuel supply risk despite Middle East conflict, minister says

Cyprus does not currently face a shortage of aviation fuel, Energy Minister Michalis Damianos said on Thursday, but added that authorities are keeping an eye on the situation. It was the second time this week that the government has denied a problem with jet fuel. The transport minister gave similar assurances on Tuesday. Speaking at a press conference reviewing the energy ministry’s work during Cyprus’ presidency of the Council of the European Union, Damianos said the government was closely monitoring developments but did not expect disruptions to fuel supplies. “As far as adequate fuel stocks go, we don’t think there is a problem,” he said. “There might be a problem down the line when it comes to aviation fuel…but at the moment the situation appears manageable, there is no cause for concern.” Around 20 per cent of global oil transits through the Strait of Hormuz, the strategic waterway that’s been virtually cut off since the outbreak of hostilities in late February. Cyprus imports fuel from two main sources: the refinery in Haifa, and the refinery at Aspropyrgos, Greece. News agency Reuters recently reported that Europe has less than a month’s supply of jet fuel stocks. Inventories stood at 38 million barrels at the start of June, compared with 99 million in the United States. That leaves Europe with ​less than 30 days of demand cover, Reuters calculations showed – the tightest of the major jet fuel markets. The European Commission has also acknowledged the situation could get worse. EU Energy Commissioner Dan Jorgensen said in June the bloc faced tighter ​jet fuel stocks towards the end of the summer holiday season and that Brussels would coordinate releases of national reserves if needed. On fuel prices, Damianos said they had fallen following discussions on a ceasefire, although future movements would depend on geopolitical developments beyond Cyprus’ control. “What we can control is fuel taxation,” he said, noting that the government’s reduced excise duty on fuels has been extended until mid-September. On electricity, the minister said the Transmission System Operator (TSO) did not expect electricity supply problems during the summer, despite demand traditionally reaching its annual peak. He added that the TSO is expected to receive 120 megawatts of battery storage capacity in January 2027, with the batteries to be installed before the summer. “There is a timetable so that we will be in a good position regarding adequacy over the long term,” he said, adding that future energy security would also depend on new Electricity Authority of Cyprus generating units and the arrival of natural gas. Reviewing Cyprus’ six-month EU presidency, Damianos said it had provided an opportunity for the country to help shape European policy on trade, competitiveness, energy, consumer protection and the single market. Among the presidency’s trade achievements, Damianos highlighted the completion of negotiations on the legislative package implementing the EU-US Joint Declaration, which he said would provide more stable and predictable trade relations between the world’s two largest economies. He also pointed to the conclusion of negotiations on the revised Foreign Investment Screening Regulation, aimed at strengthening Europe’s economic security by protecting strategic sectors and improving cooperation between member states. The presidency also secured agreement on a new framework to protect Europe’s steel industry from global market distortions and completed the revision of the Generalised Scheme of Preferences, modernising one of the EU’s key trade policy tools. Damianos also said Cyprus contributed to advancing the EU’s global trade agenda, including agreements with Mexico and the Mercosur bloc, the completion of negotiations with India and Australia, and continued talks with several other international partners. He added that Cyprus helped prepare a common European position ahead of the 14th Ministerial Conference of the World Trade Organisation. On competitiveness, Damianos said Cyprus made significant progress on the proposed Industrial Decarbonisation Accelerator Act, producing the first comprehensive compromise text on the legislation. The proposal aims to strengthen European industry, accelerate the green transition and reduce strategic dependencies in sectors including steel, cement, aluminium, automotive manufacturing and clean technologies. He also highlighted progress on the EU’s critical raw materials strategy, saying Cyprus helped establish a common position among member states to strengthen Europe’s strategic autonomy and security of supply. Another milestone, he said, was the agreement on the electronic declaration system for posted workers, expected to reduce bureaucracy and make it easier for businesses and employees to operate across the single market. The presidency also secured Council conclusions on the Consumer Agenda 2030, focusing on protecting vulnerable consumers, particularly children, in the digital environment, while discussions advanced on the proposed “EU Inc.” framework for innovative companies and start-ups. In the energy sector, Damianos described securing the Council’s negotiating mandate for the new European Energy Networks package as one of the presidency’s most important achievements. The package is intended to accelerate strategic energy infrastructure projects, simplify permitting procedures and strengthen the EU’s energy security and competitiveness. He added that Cyprus also coordinated discussions on the impact of the Middle East crisis on European energy markets while helping launch wider debates on Europe’s post-2030 energy strategy, including affordable energy, decarbonisation, investment and strategic autonomy. Damianos also highlighted progress in intellectual property, saying Cyprus succeeded in restarting negotiations on supplementary protection certificates for pharmaceuticals and plant protection products after years of deadlock. In addition, unanimous agreement was reached to begin negotiations with the European Parliament on updating rules governing geographical indications and protected designations of origin. Concluding, he said the presidency demonstrated Cyprus’ ability to contribute meaningfully to European policymaking. “The objective of the ministry was to be practical and effective, turning European priorities into concrete results with a clear impact,” he said.