Nicosia, Cyprus. Energy expert Charalambos Ellinas said around 10 million barrels of oil per day have been missing since the start of the war in Iran, contributing to higher gasoline prices in Cyprus and broader global supply disruption.
Supply disruption and Strait of Hormuz concerns
Ellinas told the Cyprus News Agency on Monday that the impacts go beyond oil, affecting traffic, electricity, and food production. He said very few oil tankers are passing through the Strait of Hormuz, which he described as the most important maritime transit route for oil shipments and for two per cent of the world’s total LNG.
Expected increases in Cyprus
He said Cyprus will see a “fairly large increase” in diesel, gasoline and electricity prices, adding that the rise had already begun and would continue. He said the cuts are serious and have caused global disruption in the supply of materials.
Call for government action on pricing
Ellinas appealed to the government to impose a price limit aimed at keeping down profits, gas costs and VAT. He said prices should be kept at the same level as before the war, with final prices reflecting only the increase in the cost of imported gasoline and diesel.
Limited options to replace missing oil volumes
Ellinas said there is no way in the short term to replenish 10 million barrels per day. He said the United States could begin using strategic reserves during the week and that other countries may follow, while adding that the shortfall would remain. He said oil prices had reached $106 and were still rising.
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