Four out of ten have limited their movements according to the 4th wave of the KTrends survey
Sales of diesel fell by 8.7% in July 2023 compared to June 2023 and gasoline by 1.8%.
By Maria Herakleous
New increasesin fuel prices of the order of 2-2 and a half cents/liter in diesel and a little lower in the price of unleaded oil are expected from today, at gas stations, as a result of the increase in the price of crude oil which is around 90 dollars/barrel. In his statements to “K”, Giorgos Petrou, former president of OEB and president of Staroil, described that the trend is expected to be upward, due to the reduction in production by the OPEC countries and the recent reduction in production by 1 million barrels of oil from Saudi Arabia. He cited estimates from Goldman Sachs, according to which oil prices could exceed $100 and reach $107 a barrel next year if production cuts do not stop. He explained that an increase of about ten dollars in the price of the raw material translates into an increase of about 7 cents/liter in the retail price of motor fuel.
It is recalled that Cyprus imports refined petroleum products, the price of which is of course determined by fluctuations in the price of the raw material. Based on the latest weekly bulletin, average retail prices in Cyprus on September 4 were €1.576/litre for unleaded 95 octane and €1.645/litre for diesel. Yesterday at noon the average price of unleaded 95 octane all over Cyprus registered a new increase and reached 1.584 euros/liter. In the case of diesel, an increase of 2 cents was recorded over a week with average prices reaching 1.666 euros/liter, while prices will be higher from tomorrow. Since July 1, with the return of excise duty on fuel and compared to today's prices it is estimated that the cost of refueling has risen to around 22 cents/litre.
Less fuel
Increases in fuel inevitably affect the behavior of consumers, who react to the rise in prices by limiting – as far as possible – consumption. As gas station owners describe, fewer and fewer customers are the ones who will ask to fill up their car's tank, with most of them content with refueling for 10-20-30 euros at a time. And not only. According to the 4th wave of the KTrends survey, for the period June-July 2023, 40% of consumers said that due to increases in fuel prices they are trying to limit their travel (the survey sample is 800 people from all over Cyprus in urban and rural areas, with the majority of respondents being in Nicosia and Limassol). In addition, 10% choose to get fuel from gas stations in the occupied territories.
According to the results of the 4th wave of the K Trends survey, 10% of consumers get fuel from the occupied territories.
< p>Looking at figures from the Statistical Service, and the latest report on sales and stocks of petroleum products, the above findings are reinforced since the following emerges: Diesel sales have decreased by 8.7% in July 2023 compared to June 2023 and gasoline by 1.8%. Of course, with the return to work after the summer holidays, and the opening of schools, it is expected that the sales of motor fuels will be significantly strengthened, as well as the traffic on the roads.
Current restrictions
Also according to the results of the KTrends survey, due to the increases in the electricity price for the June-July period, consumers are trying to reduce their electricity consumption. In particular, almost seven out of ten have reduced their electricity consumption – 16% of the sample have reduced their electricity consumption to a great extent, 24% to a sufficient extent, 25% to a small extent. 35% still consume electricity without restrictions. In any case, the September bills are expected to be inflated – due to the use of air conditioners. In the next two months, October and November, lower consumption is expected due to milder temperatures and therefore lower costs.
How much is a kilowatt hour
However, unlike motor fuels, we are not expected to see – at least not yet – new increases in the price of a kilowatt hour. According to EAC press representative Christina Papadopoulou, the price of a kilowatt hour remains at the same level as in August and amounts to 34 cents/kilowatt hour including VAT. In practice, this means that for the month of September, a household with a consumption of 800 kilowatt hours (bimonthly bill) will be asked to pay around 270 euros. 800 kilowatt hours is the average consumption per property, which of course varies according to the energy use of each household. However, with the end of state sponsorship, an electricity bill has increased by 28%. Commenting on the fact that there is an upward trend in the raw material, Mrs. Papadopoulou said that this will be felt later in the electricity bills, due to the maintenance of fuel reserves. He reminded that there is the possibility of payment facilities as well as the monthly payment plan, under which the consumer pays a fixed installment every month, based on the consumption of the previous twelve months of the property. This amount is adjusted at regular intervals depending on the fuel price and the customer's consumption.
Alternative modes of transport
The cost of fuel is a factor that can affect drivers and lead to a reduction in their movements, or even to thinking about reducing the use of their private vehicle. The other factor is the traffic chaos in the city centers, due to the excess number of cars in relation to the capacity of the road network, mainly from 7-9 in the morning and from 3-6 in the afternoon. Already, in the previous days, the park and ride program was put into effect, which can serve mainly public but also private employees, while in the coming months and before the next academic year, bus lines are expected to be created that will serve students to and from remote areas. According to statements by the Minister of Transport on “SPORT FM 95.0” and the “DISPARATION OF NEWS” program, the aim is to increase the number of passengers on the buses. At the moment bus users amount to only 3%.
