Cyprus pump prices among cheapest in EU despite recent hikes

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Despite a rise in the price of petrol due to an increase of biofuels in the mix, Cyprus remains the fifth cheapest place in the EU to fill up, Energy Minister George Lakkotrypis said.

He was speaking after briefing parliament about the country’s progress in implementing renewable energy commitments in transportation.

Cyprus is obliged to secure 10% of RES in transportation by the end of this year. According to the Energy Ministry, the main way to achieve this is by increasing the levels of certified biofuels in the mix, which, however, are more expensive due to higher production cost.

Consumers are expected to pay up to 2.5-euro cents more for petrol per litre due to the increase of biofuels in the mix.

“Cyprus ranks 5th place among EU countries with the cheapest petrol, according to EU data…Cyprus ranks 12th among EU countries with the cheapest diesel,” said Lakkotrypis.

While outlining Cyprus’ commitments, Lakkotrypis said the main goal was to increase the share of RES to 13% of total energy consumption by 2020, a goal already achieved in 2018. Today’s share stands at 14%.

Regarding energy production, the Minister said that the indicative RES target was set at 16% by the end of 2020. Latest data shows that Cyprus stands currently at 9.37% but the share is expected to rise to 19-20%.

When it comes to transportation and the 10% RES target by the end of 2020, Cyprus’ share is currently at 5%.

“The challenge we are facing is to accomplish this target with the minimum burden on the economy and consumers,” said Lakkotrypis, adding that the most effective way is by adding biofuels to the mix.

A decree issued by the Ministry is expected to raise RES share to 7.3%.

Lakkotrypis said Cyprus is finding it difficult to attain its RES targets

“The government is now looking for ways to statistically reach these goals, by selling rights in areas where it is overperforming, and buying rights in areas where it faces some difficulties.”