Diesel tops €2 a litre as more fuel hikes loom

Cyprus is being pulled deeper into the energy crisis, with retail fuel prices in the grip of a fresh surge that has pushed diesel above 2 euros a litre, and further increases expected within the week.. Retail fuel prices are moving in the opposite direction to a decline, possibly temporary, recorded on Monday in international crude oil prices. 565 euros a litre, a new record high.. New round of increases. Fuel station representative Christodoulos Christodoulou, speaking on the Alpha Kalimera programme, said one company had already announced new increases, with similar announcements expected from other companies either today or tomorrow. He warned a second round of increases was possible within the same week, saying nobody could currently say where the upward trend would stop.. October outlook. A domino effect of price increases in basic goods is expected from October, as energy costs and freight rates rise. ”.

Retail prices have been rising for several weeks, with Cyprus inflation on a continuous upward path and among the highest in the EU. Only Lithuania had higher inflation than Cyprus in August.. On fuel prices specifically, Drousiotis said he expected diesel to break the all-time price record within the coming week. It is four cents away from doing so at current prices.. 4 cents a litre. Heating oil’s latest three-cent rise took it above the previous all-time high, set in July 2022 shortly after the outbreak of the Russia-Ukraine war, adding further pressure to household heating costs this winter, particularly in mountainous areas.. Electricity bills top €300. The Electricity Authority of Cyprus (EAC) is for now holding off on changes, since electricity prices are adjusted monthly. According to EAC spokesperson Christina Papadopoulou, the September charge stands at 30 cents per kilowatt-hour including VAT.

A four-person household without rooftop solar panels is not expected to receive a bill below 300 euros for the August-September two-month period, given increased use of air conditioning.. The EAC is monitoring geopolitical developments and international price trends, but it remains unclear for now whether electricity prices will rise from October. Papadopoulou said the EAC has pre-purchased a quantity of carbon emission (CO2) allowances at low prices, creating a ‘cushion’ it could draw on in its energy mix to absorb part of any increases.. AKEL criticises government. AKEL has strongly criticised the government, accusing it of remaining largely uninvolved in addressing the impact of the Middle East crisis and the burden on households.. The opposition party said the extension of the cut to the special consumption tax was not enough, and called for immediate additional measures. It placed particular emphasis on seeking an end, at EU level, to VAT being charged on top of the special consumption tax. It also called for stricter price controls, transparency on profit margins, and targeted support for transport and heating oil, arguing that the necessary fiscal room exists.. International prices fall.

International Brent crude, however, moved in the opposite direction over the past 24 hours, trading below 100 dollars a barrel on Monday as markets hoped for a de-escalation of tensions in the Middle East. The fall is visible on trading screens but is modest and could prove temporary, given how frequent price swings have been. 31 dollars, their lowest levels in 11 days.. Analysts attributed the fall to hopes of diplomatic progress between the United States and Iran, as well as a recovery in Saudi exports. Aramco has increased flows through the Strait of Hormuz, easing, for now, fears of an immediate supply shortage.. Tighter picture in Europe. Despite Monday’s dip in international oil prices, the picture in Europe remains clearly more difficult, rooted in tight supply and falling European reserves.. Saudi Aramco has told European refiners it will not deliver Saudi crude in October, a decision that, according to reports by Bloomberg and Reuters, affects all European buyers. Refiners are already seeking alternative supplies amid heightened uncertainty..

Diesel reserves under pressure. According to Reuters, the global diesel market remains in serious short supply, and the situation is unlikely to normalise before 2027. The wars in Iran and Ukraine have significantly limited flows from the Middle East and Russia, pushing stocks to very low levels and keeping prices high. In Europe, stocks at the Amsterdam-Rotterdam-Antwerp hub were 16 per cent below the five-year average in July. Reuters noted that a fresh escalation of conflicts, an extension of Russian restrictions, or serious damage to a refinery could trigger a new wave of price rises.. Separately, that same wider pressure on Europe’s energy market is also feeding scenarios of a possible revision or relaxation of the decision to fully ban Russian gas, though there has been no official position from Brussels on this so far.