Oil above $100 piles fresh pressure on Cyprus fuel prices

Oil prices above $100 a barrel are keeping pressure on fuel and electricity costs in Cyprus, with further increases at the pumps increasingly likely as global supply concerns persist. According to Politis, Brent crude remains above $100 per barrel despite releases from strategic reserves and a recovery in oil flows from the Gulf. Shipments from the region have reportedly risen to around 15.5 million barrels per day, more than 80 per cent of pre-war levels, but the increase has yet to bring prices down significantly. At the same time, shipping through the Strait of Hormuz remains costly and risky, while physical crude markets continue to face tight supply. For Cyprus, that means more pressure on petrol and diesel prices, while higher fuel costs are also expected to feed into electricity bills. The developments have also renewed criticism of the government’s support measures. Both Disy and Akel said the package announced last week is not enough to offset the impact of higher living costs. Disy said the measures were positive, but insufficient against an estimated €1 billion cost-of-living burden in 2025. “The government must proceed with clear priorities and realistic timelines. Investments require time, which means delays come at a cost,” the party said. Meanwhile, Akel’s head of energy policy, Vakis Charalambous, said the measures remained too limited compared with the increases households were facing. “The measures do not address the magnitude of the problem in practice. They are limited compared with the increases and leave a large part of low- and middle-income households exposed,” he said. He added that “Solutions exist, possibilities exist, what remains to be seen is whether there is the political will.” Global markets, meanwhile, remain highly sensitive to geopolitical risk. Tensions involving the US, Israel and Iran continue to cloud the outlook, while attacks on energy infrastructure have added to fears of further supply disruption. Saudi Aramco chief executive Amin Nasser has also warned that global oil inventories are at “dangerously low” levels. Speaking in London, he said nearly three billion barrels had been removed from supply during seven months of conflict and that rebuilding commercial and strategic reserves could take up to two years. Pressure is also coming from the war in Ukraine, with renewed Russian attacks and the prospect of further Ukrainian strikes on refineries and energy facilities keeping concerns over Russian oil and gas supplies alive. The strain is being felt in financial markets too. Persistently high energy prices, combined with a sell-off in eurozone government bonds, pushed the euro to a 17-month low against the US dollar on Monday. A weaker euro makes dollar-priced oil more expensive for European importers, adding to the pressure on energy-dependent economies such as Cyprus.