Downward trends are observed in fuel prices, and further reductions are expected in the near future due to the US-Iran agreement, which hopefully will lead to a normalisation of the situation in the Middle East, Director of the Consumer Protection Service at the Ministry of Energy, Commerce and Industry, Constantinos Karagiorgis, told the Cyprus News Agency (CNA).
According to data from the Service, the price of unleaded 95 decreased at the pumps by 6.5 cents per liter in June, while the price of diesel dropped by 10.8 cents. Karagiorgis said that the recent agreement between the US and Iran, which indicated that the situation would normalise, has positively affected prices, and "there has been a de-escalation in both crude oil prices and refinery prices."
He noted that the downward trend in prices was reinforced after the signing of the agreement and "it seems that, gradually, not only in fuel prices but also throughout the supply chain, normality will prevail."
Asked if fuel prices would fall to the levels they were at before the war in Iran, Karagiorgis said that "the price increases were significant enough that it will certainly take some time for prices to normalise and for us to return to pre-war levels."
"Beyond prices, infrastructure in oil-producing countries was also affected, which may require some time for production to return to pre-war levels," he added.
Asked to comment on the fact that the measure to reduce the excise tax on liquid fuels expires on June 30, Karagiorgis stated that the Service informs the Ministry of Finance daily about the course and trend of fuel prices, adding that the final decision on whether to continue subsidising fuel prices will be made by the Ministry as the competent authority.
According to data from the Service, seen by CNA, from the beginning of June until the 19th of the month, the price of unleaded 95 decreased at the pumps by 6.5 cents per liter, diesel by 10.8 cents per liter, while the price of heating oil remained stable. In relation to before the start of the US-Iran war until June 19, according to the data, the average price of unleaded 95 shows an increase of 23.2 cents per liter, diesel 28.3 cents, and heating oil 44.2 cents.
Meanwhile, in statements to CNA President of the Pancyprian Association of Petrol Station Owners, Savvas Prokopiou, expressed the view that a few more reductions in fuel prices will follow in the coming days. However, he noted that we are seeing a concerning stabilization of international oil prices around $78 to $80 per barrel, which under normal circumstances should have moved lower, after an agreement was announced.
Prokopiou expressed hope that there will not be "be a return to an upward trend in prices again." However, he continued, in the coming days, "we expect a few more reductions."
Furthermore, regarding the fact that the measure to reduce the excise tax on liquid fuels expires on June 30, Prokopiou stated that it is necessary to maintain the subsidy for a little longer because "we must return to normalcy more smoothly."
He added that if an extension is not granted for the reduced excise tax period on fuels, consumers, while watching prices decrease, "will suddenly see prices rise sharply by 8.3 cents."
