Fuel prices in Cyprus are rising again. Diesel is now at €1.86.

Fuel prices in Cyprus are rising sharply again. Diesel fuel averaged around €1.863 per liter on September 2nd, while 95-octane petrol cost around €1.607. Since the current wave of price increases began, diesel fuel has increased by 45 cents per liter, or 31.8%, while petrol has increased by 29.2 cents, or 22.2%.

At the same time, the government wants to prevent another automatic increase after September 17. A political decision has already been made to extend the reduced excise tax until the end of November, and Energy Minister Michalis Damianos confirmed on Sunday that talks are underway on further ways to reduce costs for drivers.

Diesel prices increased by 45 cents per liter

The current wave of price increases started at prices around 1.315 euros per liter of petrol and 1.413 euros per liter of diesel.

In just 26 days, gasoline prices rose to €1.522, and diesel prices to €1.764. The bulk of the first wave of price increases occurred in March.

In April, the government reduced the special consumption tax on fuel by 8.33 cents per liter, which partially limited the increases visible at the stations.

After the situation calmed down later, prices started to rise again in mid-July. From July 16th to September 2nd, gasoline prices increased by another 13.5 cents, and diesel as much as 28.3 cents per liter.

CHECK CURRENT FUEL PRICES
Lowest petrol and diesel prices in individual regions – updated on CYPRNews:
https://cyprnews.pl/ceny-paliw-na-cyprze/

In practice, the difference is very visible when refueling.

With a 50-litre tank, the current price of diesel means an expense of approximately 22.50 euros larger than at the beginning of this wave of price increases. In the case of gasoline, the difference is approximately 14.60 euros.

Diesel getting closer to 2022 records

The current situation is beginning to resemble the period after the Russian invasion of Ukraine.

In 2022, gasoline reached around €1.82 per liter, while diesel was approaching €2. Today, diesel fuel in particular is back near those levels.

With an average price of €1,863, diesel is now only a few cents cheaper than the average levels seen during the worst fuel crisis in 2022.

Gasoline remains significantly further from its previous records for now.

The government wants to maintain the relief until the end of November

The current excise duty reduction reduces the burden on fuels by 8.33 cents per liter.

It was originally intended to last for three months and was then extended to September 17, 2026.

The government has already politically decided that the relief is to be maintained until the end of NovemberA government spokesman confirmed this on September 3, while also indicating that the planned "green tax" on fuel, which would mean an additional burden of around 9 cents per liter, will not be introduced at this time.

However, the formal extension of the reduced excise duty still requires the appropriate procedure to be carried out.

Energy Minister Michalis Damianos said on Sunday that the government is also discussing other options to keep prices as low as possible. He emphasized that decisions should be made before September 17.

CHECK ALSO
Just a few days ago we analyzed why diesel could again approach 2 euros per liter:
https://cyprnews.pl/diesel-moze-zblizyc-sie-do-2-euro-za-litr-kluczowy-bedzie-17-wrzesnia/

Why are fuel prices so high?

Prices are influenced by several factors at the same time.

New geopolitical tensions in the Middle East have once again increased uncertainty in global oil and fuel product markets. At the same time, European refining margins have risen sharply.

According to data quoted by Reuters, margins on European Eurobob E5 gasoline exceeded at the beginning of September $62 per barrel, which means they are very close to the record levels achieved in 2022.

The situation is also influenced by limited global refining capacity and low fuel stocks at the European hub Amsterdam-Rotterdam-Antwerp.

As a result, the price of finished gasoline or diesel may rise much faster than the price of a barrel of oil itself.

Fuel is already visible in inflation

Rising energy prices are also increasingly visible in official statistical data.

Inflation in Cyprus was in August 3,5%. Petroleum products were as much as 20.3% more expensive than a year ago and 6.9% more expensive than in July.

In the transport category, prices increased year-on-year by 11,36%.

This means that rising fuel prices no longer impact only the bill at the pump. They also impact transportation, delivery, and business operating costs.

There is no shortage of fuel supplies at the moment

Despite the tense international situation, there are currently no reports of problems with fuel availability on the island.

Representatives of station owners inform that orders are being processed normally and the problem for drivers is mainly related to price, not the physical lack of petrol or diesel.

However, the coming days will be important both due to the situation on global markets and the formal extension of the reduced excise duty.

So, one thing remains for drivers: it is worth comparing prices before filling up, because differences between stations can still mean savings of several euros on one tank.

You can check current prices here: https://cyprnews.pl/ceny-paliw-na-cyprze/

Sources: Consumer Protection Service, Statistical Service of Cyprus, Cyprus Consumers Association, Government of Cyprus, KYPE/CNA, Reuters, Philenews