Cyprus fuel sales surge in March despite price volatility

Petroleum product sales surged by 18.6 per cent year-on-year in March 2026, reflecting strong demand despite ongoing volatility in fuel prices.

According the Cyprus Statistical Service (Cystat), total sales reached 127,272 tonnes during this time, with significant increases recorded across most fuel categories, pointing to heightened activity in both transport and energy consumption.

The sharpest rises were seen in marine gasoil, which jumped by 156.3 per cent, and kerosene, which increased by 149.5 per cent, alongside a 70.9 per cent rise in heating gasoil and a 68.0 per cent increase in asphalt sales.

Additional gains were recorded in liquefied petroleum gases at 50.4 per cent, aviation kerosene at 8.6 per cent, road diesel at 8.0 per cent and motor gasoline at 4.6 per cent, indicating broad-based growth.

By contrast, sales of heavy fuel oil fell by 65.5 per cent and light fuel oil declined by 48.3 per cent, highlighting shifts in consumption patterns.

Importantly, sales from filling stations alone rose by 12.5 per cent to 62,528 tonnes, underscoring increased demand at the retail level.

On a monthly basis, total sales increased by 13.7 per cent compared to February 2026, driven by higher consumption of aviation kerosene, marine gasoil, road diesel and motor gasoline.

At the same time, petroleum stocks rose by 4.1 per cent at the end of March compared to the previous month, suggesting inventory accumulation amid fluctuating market conditions.

For the first quarter of 2026, total sales recorded a 9.8 per cent increase, signalling sustained upward momentum in fuel consumption.

The rise in demand comes against a backdrop of ongoing fuel price volatility, shaped by international market trends and geopolitical developments.

“The sector is largely affected by external and geopolitical factors,” Consumer Protection Service director Constantinos Karayiorgis said last week.

He added that “it appears that in the coming days there will be moderate reductions in fuel prices, mainly in unleaded 95,” pointing to potential short-term relief for consumers.

Earlier in April, tensions emerged over the implementation of a government fuel subsidy of 8.33 cents per litre, with consumer groups alleging that part of the reduction was not fully passed on at the pump.

“It is clear that consumers did not benefit from the full subsidy amount, while part of it was absorbed at their expense,” said Cyprus Consumers Association chairman Marios Drousiotis.

However, authorities rejected claims of profiteering, maintaining that consumers still benefited overall from the tax reduction.

Fuel prices in Cyprus remain relatively competitive within Europe, although fluctuations persist due to changes in refinery costs and supply dynamics.

“Retail fuel prices are determined by refinery prices rather than crude oil prices,” said Karayiorgis, emphasising the complexity of pricing mechanisms.

The combination of rising consumption and price uncertainty reflects a market where demand remains resilient, even as consumers navigate shifting costs and policy measures.