Minister urges calm on fuel prices as expert warns of prolonged hikes
Finance Minister Makis Keravnos called for restraint over rising fuel costs, saying support measures are being prepared, while an energy expert predicts high prices will last until mid-2027.
Finance Minister Makis Keravnos on Tuesday urged against “alarmism” over rising fuel prices, as reported by Cyprus Mail, saying the government is monitoring the situation and preparing additional support measures to be discussed at a cabinet meeting on September 30.
Keravnos argued that Cyprus “fares much better than any other country in the European Union”, noting the island ranks as the fifth cheapest EU country for petrol despite global price hikes. European Commission data from September 17 shows Unleaded 95 petrol in Cyprus averaged €1.649 per litre, compared to the EU-27 average of €2.063, while diesel sold for €1.915 versus €2.158 across the bloc.
However, Eurostat data released on Tuesday showed Cyprus recorded one of the EU’s sharpest monthly increases in petrol prices in August, with a 6.2 per cent rise between July and August — the fourth highest in the bloc. Retail prices have climbed steadily since the outbreak of war in the Persian Gulf, with Unleaded 95 rising from €1.318 on March 5 to €1.695 on September 22.
The government recently extended a discounted fuel consumption tax on petrol and diesel until the end of November.
Energy expert Charles Ellinas forecast that steep fuel prices — mainly diesel and jet fuel — will persist until about the middle of next year, with diesel potentially exceeding €2.20 a litre in the coming months. He also warned of potential supply shortages, telling the Cyprus News Agency that diesel and jet fuel prices are more than double Brent crude, which has dropped below $100.
Ellinas said high fuel costs have a knock-on effect on other commodities such as food due to more expensive transport, describing a chain-reaction effect on the economy with no easy way out.
What it means for residents
Fuel prices are set to stay high for months, which will keep pressure on household budgets, transport costs and the price of goods in shops. The government’s upcoming support measures are worth watching closely.
- Budget planning: Expect elevated fuel costs at least through the winter, so factor higher transport and heating expenses into monthly budgets.
- Support measures: Details of the cabinet’s decisions on September 30 will determine whether any relief reaches households and businesses.
- Supply watch: Potential shortages of diesel and jet fuel could affect deliveries and travel, so stay informed about any disruptions.
This text is written from the source article and is not a translation of it.
