Cyprus fuel stocks stable – but outlook ‘can change overnight’

For the moment, Cyprus does not face a problem in relation to its fuel stocks amid the Persian Gulf energy crunch, the Cyprus Mail has learned.

“Right now we are fine, but it’s only a snapshot, things can change from one day to the next,” said George Papanastasiou, the former energy minister.

About 20 per cent of global oil consumption passes through the Strait of Hormuz in the Persian Gulf – now effectively closed. For now, Cyprus remains unaffected.

Papanastasiou, who in the past had served as managing director for Vttv – boasting the largest energy storage and distribution terminal in the eastern Mediterranean – said that under EU law Cyprus must hold strategic oil reserves that correspond to 90 days of consumption.

The 90 days is calculated according to the consumption in that timeframe during the previous year.

The majority of the reserves – the responsibility of Kodap, the Organisation for Storage and Management of Oil Stocks – are held in Cyprus, with a small quantity stored abroad.

Papanastasiou explained that the strategic reserves include physical stocks as well as stocks on paper, called ‘tickets’.

Tickets are contractual, financial agreements where a supplier (ticket seller) agrees to hold or reserve a specified amount of oil on behalf of a buyer (typically a fuel importer or refiner) for a fee. These tickets allow companies or governments to meet mandatory, legal emergency oil stock obligations without physically storing the products themselves. They give the ticket holder the right to access and buy specific volumes of oil during an emergency within a designated period.

Cyprus’ strategic reserves are kept in storage facilities owned by Vttv. Kodap is in the process of building own storage terminal, as it doesn’t have one yet.

Citing the latest data available to him, Papanastasiou said the strategic reserves come to 530,000 metric tonnes total. This includes unleaded petrol, diesel and heavy fuel oil.

Some 400,000 metric tonnes of physical stock are held in Cyprus; another 110,000 tonnes consist of tickets held in EU countries; and approximately 20,000 tonnes of jet fuel and diesel are stored in Greece.

The government of the day may release part of the reserves at times of emergency.

For example, the aviation sector in Cyprus is heavily reliant on the oil refinery in Haifa for jet fuel.

In the summer of 2025, amid the hostilities in Gaza, Israel suspended the export of jet fuel. Papanastasiou, then the energy minister, intervened twice to release some of the strategic stocks to the market.

“In one case, our supplies of jet fuel for the airports were running very low,” he recalls.

A release of strategic stocks to the market undergoes strict scrutiny and also requires the nod from the European Commission.

As far as private industry goes – refined petroleum products – companies here import chiefly from Israel and Greece. Imported fuel from Israel is cheaper, because of the shorter shipping distance.

In wartime, said Papanastasiou, Israel may halt the export of middle distillates. Jet fuel is a middle distillate, which Israel prioritises for its air force.

That leaves Greece for imports.

According to a March 9 report in Argus Media, a cargo of Venezuelan crude slated to discharge at the Haifa refinery did not unload and instead sailed to Greece, likely because some units at the facility were shut following an escalation in the US-Iran conflict.

On this, Papanastasiou commented that Israel shuts down some operations at Haifa during wartime – for safety reasons for personnel, but also to minimise the presence of flammable liquids on site.

On February 28, the day the war broke out, the Times of Israel reported that the Bazan oil refinery complex in Haifa announced that flaring was expected, with an increase in polluting emissions, following the shutdown of some of the group’s facilities.

Earlier this week, Iran’s Islamic Revolutionary Guard Corps (IRGC) said it launched ballistic missiles at the Bazan refinery, in response to Israeli strikes on Tehran’s oil depots. While air raid sirens sounded in Haifa, Israel has not confirmed any damage.

Other than Israel, the other major source of fuel is Greece.

Refineries in Greece get their fuel from Azerbaijan and also from South America.

Petrolina get most of their supplies from Haifa. Esso, Agip are Petrolina brands.

Staroil buys from Petrolina. Shell imports from Motoroil in Greece.

During his tenure, Papanastasiou recalls, he had urged fuel importers to diversify and not just have one client.

Dinos Lefkaritis, executive chairman of Petrolina, told the Cyprus Mail they face no supply issues.

“We’re OK for the moment. We’ve got enough petroleum products, and more are en route.”

In fact, he said, a shipment from Haifa arrived here days ago.

As for the Electricity Authority of Cyprus, it has its own traders. But should the EAC run low on supplies, it could draw (buy) some from the strategic reserves.

Earlier, the EAC told us that they’ve made provisions for fuel deliveries for one month going forward.

The EAC typically receives fuel shipments every two to three weeks.