Oil price rise puts upward pressure on fuel prices in Cyprus
Fuel prices in Cyprus have recorded small increases as oil rose above $90 a barrel, while reduced excise duty is due to expire on September 17.
Nicosia, Cyprus. Fuel prices in Cyprus are facing upward pressure after the international price of oil rose above $90 (€78) a barrel, industry representatives said on Monday.
Small increases have been recorded over the past two weeks, particularly for diesel, which is averaging about €1.60 per litre.
Oil market movement
Speaking on behalf of the petrol station owners’ association, Christodoulos Christodoulou told the Cyprus News Agency that oil was trading at between $90 and $91 (€78 to €79) a barrel, up from about $80 (€69) a barrel within a week.
He said it was too early to determine how much of the increase would be passed on to consumers, as fuel companies must first receive cargoes purchased at the higher prices.
“We cannot draw conclusions about what will happen to prices,” he said.
Excise duty extension
Christodoulou said petrol station owners are not directly informed of eventual price increases, as fuel companies purchase stock and submit their invoices to the finance ministry.
The current extension of reduced excise duty on fuel expires on September 17. Without a renewal, an automatic increase of 8.33 cents per litre, including VAT, would apply to both grades of petrol and diesel, he said.
He estimated that diesel could approach €2 per litre if the relief measure expires.
The measure reduces excise duty on petrol from €0.429 to €0.359 per litre and on diesel from €0.40 to €0.33 per litre.
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