Drivers cut fuel spending as petrol prices surge

Motorists are skimping at the pump as the fallout of the Iran war keeps petrol prices high, the head of the association of petrol station owners said on Thursday.

According to Savvas Prokopiou, only about 10 to 15 per cent of drivers continue to fill up the tank.

The rest are cutting back spending on petrol, seeing that every few days they get less for their money.

“What we’re seeing in the last few weeks is consumers trying to save on petrol, limiting their transit as far as possible,” Prokopiou told the Cyprus News Agency.

Diesel now averages at €1.888 a litre, with the highest price recorded on the island at €1.978. The lowest was at €1.785.

As for Unleaded 95 petrol, the average clocked in at €1.543, the lowest at €1.458, and the highest at €1.618.

On Thursday, Brent futures contracts traded at around $108 a barrel, amid reports that US President Donald Trump would be briefed on expanded military options in Iran.

Iran has kept the Strait of Hormuz largely closed, while at the same time the US Navy is enforcing a blockade on Iranian ships. About about one-fifth of the world’s oil trade goes through the Persian Gulf.

Prokopiou said rising fuel prices are also impacting petrol station owners.

“For businesses, the cost per shipment has gone up considerably. Two months ago, a cargo would cost €40,000, today it’s around €60,000.”

On average, each petrol station needs two shipments to be able to operate.

Businesses have seen profit margins dip, as petrol stations get a fixed amount per litre rather than a percentage on the retail price.

Constantinos Karagiorgis, head of the Consumer Protection Service (commerce ministry), described the overall fuel situation as “worrying and volatile”.

No safe predictions on the trajectory of fuel prices can be made, he added.

Karagiorgis said his service is monitoring the data on imported refined products.

Though prices are up across the board, they are in line with global trends.

“For now, there is no reason to intervene [in the market],” he added.

The official advised drivers to shop around for the best deal, noting that significant price differences exist among the petrol stations.

“Some stations may sell for 15 or 18 cents lower. So for people wanting to save, they can do that.”