The vice-president of the Petrol Retailers Association has welcomed the government's decision to extend reduced fuel taxation until November, while warning that fuel prices remain at high levels and are likely to remain vulnerable to movements in international oil markets.
Speaking to Politis Radio 107.6 and 97.6 on the Defteri Matia programme, Christodoulos Christodoulou said recent price increases, though gradual, have accumulated over recent months and are placing a growing burden on consumers.
'The increases may seem small, but they add up'
Christodoulou said fuel prices were already at elevated levels.
"We are already at high price levels. The increases of recent months may seem small, but when they are added one on top of the other, they create a significant burden," he said.
According to Christodoulou, 95-octane petrol currently stands at around €1.60 per litre, while diesel sells for approximately €1.86 per litre under the reduced taxation regime.
He noted that prices would be even higher without the current tax relief measures.
"Without the reduced taxation, diesel would be around €1.95 per litre," he said.
'Very positive news'
Commenting on the extension of the measure until November, Christodoulou described the development as particularly welcome.
"This is very positive news. It is important that the measure is being extended for another two months," he said.
At the same time, he stressed that price trends will continue to depend on developments in global oil markets.
"Of course, everything will depend on the course of international prices. If increases continue in the oil markets, we will be affected accordingly," he said.
'We did not ask for a specific duration'
Asked whether the association had requested the measure be extended for a particular period, Mr Christodoulou said the industry had merely sought its renewal.
"We did not ask for a specific duration. We simply asked for the measure to be renewed," he said.
He noted that decisions on the scheme are typically reviewed every two months as authorities reassess market conditions.
Concern over heating oil
Christodoulou expressed particular concern about heating oil prices ahead of the winter season.
"Heating oil is not included among the fuels that benefit from reduced taxation, as it already carries a lower tax burden," he said.
However, he warned that its price has risen significantly.
"Its price has increased substantially and is approaching €1.48 per litre. This particularly concerns us as winter is approaching and many consumers will need heating oil," he said.
In his view, current price levels will create serious difficulties for many households.
"At these prices, it will be very difficult for several households to purchase the quantities they need," he said.
Consumers already asking about winter prices
Christodoulou said consumers have already begun seeking information about heating oil costs, although purchasing has not yet started.
"They are not yet making purchases, but they are already asking about prices," he said.
"As soon as they hear the current price levels, they realise that things are difficult."
'The positive scenario is stabilisation'
Looking ahead, Christodoulou said fuel prices were rising not only in Cyprus but across Europe.
"In Greece and across the rest of Europe we are also seeing increases in fuel prices," he said.
According to him, the best realistic outcome at present would be for prices to stabilise.
"For us, the positive scenario would be for prices to stabilise at current levels," he said.
However, he warned that any further rise in international oil prices would inevitably be passed on to consumers in Cyprus.
"If there are further increases in international markets, then unfortunately we will see a greater burden in the Cypriot market as well," he said.
'The next cargoes will show the real picture'
Christodoulou said upcoming fuel shipments would provide a clearer indication of future price trends.
"The next cargoes will show the real picture," he said.
He reiterated that prices were already exceptionally high.
"Today, 95-octane petrol is around €1.60 per litre, diesel is at €1.86 and heating oil is approximately €1.48. These are already very high prices," he said.
Geopolitics and oil markets
Concluding, Christodoulou linked fuel price movements to broader geopolitical developments in the region.
"Certainly. Every geopolitical tension directly affects the price of oil," he said.
He added: "We are already seeing oil move higher, and this is creating concern for the period ahead."
