High prices for petroleum products, particularly diesel and jet fuel, will continue through the middle of next year, according to energy expert, Charalambos Ellinas, estimated.
Mr. Ellinas told KYPE that the main problem is that many refineries in Russia are out of operation due to drone attacks from Ukraine, while at the same time, exports of diesel and petroleum products from the Persian Gulf have dropped significantly—by more than 50%—due to the war.
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Regarding Cyprus, he estimated that the price of diesel will exceed €2.10 to €2.20 in the next one to two months and will remain high for quite some time.
“We should expect problems and be prepared to deal with them for quite some time,” he emphasized.
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He also noted that the reduction in excise tax should continue next year.
Mr. Ellinas told CNA that “although the price of Brent isn’t very high today—it has fallen below $100— the supply of diesel and petroleum products is in a difficult position, and even more so jet fuel—the fuel for airplanes—which in some countries, such as the United States, people are beginning to worry that planes will be grounded.”
He noted that prices are skyrocketing due to the shortage of these products.
“The prices of diesel and jet fuel are more than twice the price of Brent. And they will rise even further because, unfortunately, these problems won’t be solved today or tomorrow,” he emphasized.
Yesterday, he said, a massive refinery in Moscow was bombed and is completely out of commission; it will take months to resume production.
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“This means that even if there is a lull in the war with Ukraine, this situation will persist for much of the coming year, and high prices may continue until the middle of next year,” estimated Mr. Greek expert.
For example, he said, the price of Brent crude for delivery in April 2027 is estimated at $90, so prices will remain high for quite some time.
He also spoke about the ripple effects of this development.
“The effects, of course, are felt in transportation, food, etc., and prices will continue to rise. This is not something under our control—the factors are external.”
He added that, along with rising prices, inflation and interest rates are also on the rise.
“There’s a ripple effect on the economy, and unfortunately, there’s no easy way out— it’s a problem the world has been dragged into because of the wars in Iran and Ukraine, to the point where we’ve now gone beyond easy solutions. “High prices for petroleum products—especially diesel and jet fuel—will unfortunately continue until the middle of next year,” Mr. Ellinas concluded.
