Diesel could approach €2 per liter. September 17th will be crucial.

Fuel prices in Cyprus could rise again. Oil is currently trading at around $90-91 per barrel on global markets, and an additional threat to drivers is the upcoming end of a temporary excise tax reduction.

If the government does not extend the tax relief, petrol and diesel prices will automatically increase by 8.33 cents per liter including VAT from September 17. Christodoulos Christodoulou, vice president of the Cypriot Association of Gas Station Owners, warns that under the current circumstances, the price of diesel could approach €2 per liter.

Fuel prices in Cyprus are already rising

According to Christodoulou, for about two weeks now, small but systematic price increases have been observed at gas stations, especially in the case of diesel fuel.

The reason is the situation on international markets. The price of oil has increased in about a week from about 80 to $90-91 per barrel.

It's not yet known how much the price increases will ultimately reach Cypriot stations. Fuel companies must first collect supplies purchased at the new, higher prices.

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September 17th may be even more important

The extended excise tax reduction on petrol and diesel expires on this day.

If the government does not decide to extend the deadline again, the price of a liter of 95, 98 octane petrol and diesel will be added again. 8.33 cents including VAT.

Currently, the excise tax on petrol has been temporarily reduced from 0.429 to 0.359 euros per litre, and on diesel from 0.40 to 0.33 euros.

Finance Minister Makis Keravnos announced at the end of August that the situation was being assessed on an ongoing basis, but that no decision had yet been made on further extension of the relief.

Diesel close to 2 euros?

According to a representative of station owners, the combination of more expensive crude oil and the return of full excise tax could hit diesel prices particularly hard.

Christodoulou estimates that diesel may approach the level of 2 euros per liter, if the tax break expires and high oil prices persist.

Heating oil is also becoming more expensive. Its price has already approached 1.50 euros per liter, while at the end of last winter it was around 1.10 euros.

At the current price, filling a 1000 litre tank would mean an expense of approximately 1500 euro.

There is no shortage of fuel supplies at the moment

Despite the tense geopolitical situation, there are currently no problems with supplying the station.

Companies are fulfilling orders as usual and – according to the industry – there are no signals of fuel shortages.

The most important thing for drivers will be the next two weeks: further oil prices and the decision on the reduced excise tax after September 17.

Sources: Philenews, KYPE