Nicosia, Cyprus. The preliminary agreement between the United States and Iran is expected to lead to further reductions in fuel prices, the energy ministry said on Monday. Officials said both crude oil and refinery prices had de-escalated, while noting that prices remain well above pre-conflict levels.
Recent price movements
Consumer protection service director Constantinos Karagiorgis said there was a de-escalation in both crude oil prices and refinery prices.
According to ministry data, the average price of unleaded 95 petrol fell by 6.5 cents per litre during the current month, while diesel prices dropped by about 10.8 cents per litre.
Prices remain above pre-conflict levels
Despite the recent declines, fuel prices remain significantly higher than before the outbreak of hostilities.
Compared with levels recorded before the conflict and up to June 19, the average price of unleaded 95 petrol increased by 23.2 cents per litre, diesel by 28.3 cents, and heating oil by 44.2 cents. Heating oil prices have remained stable since June.
Outlook for further reductions
Karagiorgis said it appeared that normality would gradually be restored not only in fuel prices but across the entire supply chain.
He said prices are expected to fall further, but added that the earlier increases were substantial and that it would take time for prices to return to pre-conflict levels.
He also said infrastructure in oil-producing countries had been affected, meaning production could take time to return to previous levels.
Excise duty review
Asked about the reduced excise duty on liquid fuels, which expires on June 30, Karagiorgis said the issue falls under the finance ministry’s remit.
He added that the ministry remains in close contact with his department and receives daily updates on fuel price trends.
Petrol station owners’ association chairman Savvas Prokopiou also said further price reductions are expected.