There is cautious optimism in the market regarding small decreases in fuel prices over the next 24 hours, while gas station owners are once again sounding the alarm about the viability of their businesses. Speaking on the “Alpha Summer” show, Christodoulos Christodoulou, spokesperson for the Gas Station Owners’ Association, clarified the situation regarding price fluctuations and the industry’s thorny problems.
As Mr. Christodoulou noted, estimates of a potential decline are based on a comparison of international oil prices. “Prices today are around $95 per barrel. Today the price is at $88, so the next shipment, logically, if prices remain at these levels, should be expected to be slightly cheaper,” he noted, though he was quick to downplay the situation. He also explained that if the international price rises above $90 again, then prices at the pump will either remain at the same levels or decline slightly.
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When asked why the price reductions are not immediately reflected in the Cypriot market, the spokesperson for the gas station owners explained the fuel import process. Each oil company brings in its own shipments every 10 to 15 days, depending on its needs.
“They bring in the new shipments, store them in their tanks, and calculate the average price based on their inventory,” he emphasized, adding that at the gas stations themselves, the changes become apparent within 24 to 48 hours, until the existing stock is depleted.
At the same time, persistently high prices are putting immense pressure on gas station owners. Mr. Christodoulou described a three-pronged set of challenges: the need for greater working capital when purchasing fuel, the decline in consumer demand, and the intense unfair competition from the occupied territories. “The higher the price gets, the more people go to the occupied territories. This is a very important factor that greatly affects our business. It amounts to unfair competition,” he emphasized, noting that under these conditions, a serious issue of sustainability for gas stations arises once again.
Finally, regarding government measures, Mr. Christodoulou noted that the excise tax subsidy will continue through mid-September, a move he described as a positive step, with the industry awaiting the government’s next decisions on managing rising prices.
