Fuel prices are set to increase by up to 10 cents per litre by the end of the month due to the reduction in global production, said the Petrol Station Owners Association.
In comments to Politis daily, Christos Christodoulou, chair of the petrol station owners’ association, said that prices are expected to go up “by four or five cents per week until at least the end of the month”.
According to Christodoulou, prices will increase by four to five cents due to the global reduction in production.
“Already, a company has sent its updated prices, which are increased, while pump increases are expected from the other companies,” said Christodoulou.
Saudi Arabia and Russia have led the reduction in output, the world’s second and third largest oil-producing nations.
They form part of the Organisation of Petroleum Exporting Countries (OPEC+), which began limiting supplies last year to “bolster the market.”
As a result, the benchmark price of Brent crude oil breached $90 (€84) a barrel for the first time this month after Saudi Arabia and Russia extended their pledge to cut oil production.
Based on Cyprus Consumers Association data, the price of 95 octane petrol has increased by 22 cents since the beginning of the year.
In comments to Sigma TV, the head of the consumers’ association, Marios Drousiotis, said diesel and heating oil prices have also recorded similar increases, with further hikes expected.
Drousiotis confirmed that one oil company has already pushed their prices up by three cents per litre and that increases are expected to continue.
He said that despite the continuous hikes in the price of fuel, the government has yet to move towards helping consumers.
“We have been asking the government to do this and help consumers, but they keep telling us ‘we’ll see’ while consumers continue to suffer,” said Drousiotis.
“The only solution is to bring back the fuel subsidy, which they got rid of on July 1.”
According to data collected by the Financial Mirror, after the recent increases imposed on fuel, consumers are paying up to 21% more at the pumps compared to when the measure for a reduced tax rate was applied.
On June 30 (the last day of the fuel subsidy), the average selling price of 95 octane Petrol was €1.386 per litre, shooting up by almost 30 cents to €1.679 on September 19.
The average selling price of diesel on June 30 was €1.408, while on September 19, it was €1.692, an increase of €0.284.
The average selling price of heating oil was €0.969 at the end of June, jumping to €1.207.
According to analysts, three reasons have driven up international fuel prices.
- The reduced production by 1.3 million barrels per day from the oil-producing countries of OPEC
- Estimates for significant shortages possibly reaching 3.3 million barrels per day
- China’s recent announcement of a reduction in foreign bank reserves signals a strengthening of economic activity in the world’s largest economy, meaning that oil demand will increase further in an already stressed market.
