After a prolonged phase of stability, fuel prices have seen a marginal increase over the past week, as revealed by the latest European Bulletin oil report.
This comes despite the implementation of a reduced tax rate in Cyprus on November 3, 2023, intended to alleviate the financial burden on consumers.
Under the current scheme, local motorists are enjoying a reduction of 8.33 pence per litre on unleaded petrol and diesel, alongside a 6.33 pence per litre cut in the consumption tax for heating oil. The relief measures are set to continue until February 2024 for vehicle fuels, with the heating oil discount extending from December to March 2024.
The Ministry of Finance is currently assessing the feasibility of extending these relief measures, including the possibility of maintaining the reduced consumption tax on fuels. The future of the tax reliefs will be presented to the Cabinet on Wednesday by Finance Minister Makis Keravnos.
The measures were initially introduced in June 2022, in response to the soaring international crude oil prices, which had peaked at $120 a barrel.
Global prices
In international markets, Brent crude for April delivery recently saw a 0.7% increase, reaching $83.47 a barrel – the highest since January 26. This marks a 1.6% weekly gain.
The EUR Bulletin’s latest report, dated February 12, 2024, indicates a 1.34% rise in 95 octane unleaded petrol prices, now averaging €1.359.12, up from €1.341.41 the previous week. Diesel has also seen a slight increase of 1.58%, averaging €1.477.89. Heating oil prices climbed by 1.05%, now at €1.056.77.
Cyprus emerges as the second most affordable country for unleaded petrol in the Eurozone, with Malta leading the pack. Conversely, countries like Denmark, the Netherlands, and Greece face the steepest prices. Malta and Cyprus offer the lowest diesel rates within the EU, with Bulgaria being the second most economical.
OPEC Secretary-General Haitham Al Ghais, despite Saudi Arabia’s decision to delay expanding its oil production capacity, remains optimistic about the long-term oil demand.
He said that this decision should not be misconstrued as a sign of diminishing crude demand, reinforcing the robust outlook for oil consumption in the future.
