Sales of service stations were reduced in 2020, and fuel prices were also reduced. Now, gas station owners are expecting a difficult year, as the coronavirus pandemic in 2020 has affected every business and sector of the economy, and the problems are evident from the first days of the new year.
In 2021 it will show
The new measures for the fight against the coronavirus pandemic, which will inevitably lead to a reduction in the mobility of the citizens, will consequently bring a reduction in the fuel consumption and reduction in the sales of petroleum products, comments to “F” Stefanos Stefanou, president of the Cyprus Association .
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As it was next, the gas station owners were affected as entrepreneurs by the pandemic and the necessary measures taken in recent months. “There is no business that has not been affected by the pandemic. Gas station owners saw a reduction in fuel consumption of about 15% to 20%, across Cyprus. In addition, the purchases of products in the shops inside the gas stations have decreased considerably. The decrease in sales of course depends on the location of each service station. However, in general, the reduction is estimated to be around 15% -20% “, says Mr. Stefanou.
Regarding the special support plans offered for the companies, the gas station owners benefited, points out Mr. Stefanou, from the subsidy of 60% of the employees' salary. “The government was a good helper to companies like us, which were in suspension. We worked with 60% for the salaries and we are grateful for that “.
The pandemic and the data it brought, however, helped a portion of gas station operators operating near roadblocks to the occupied territories. While before the pandemic thousands of Greek Cypriots went to the occupied territories and filled the tanks of their cars with cheaper fuel, now, after the restriction of traffic through roadblocks, this phenomenon has almost disappeared.
These, however, for the difficult year that has passed. The picture for 2021 will depend mainly on the course of the pandemic and the effectiveness of the new measures that will be taken. As Mr. Stefanou comments, “with a new lockdown we expect a reduction in our turnover. “You realize that as long as people do not move and stay at home, the gas stations will not have a job either.”
Big drop in sales
It is important to refer to the latest measurements of the Statistical Service, which show that total sales of petroleum products in October 2020, compared to September 2020, fell by 4.7%.
More specifically, in October 2020 the total sales of petroleum products reached 105,658 tons, recording a decrease of 21.2% compared to October 2019. A decrease was observed in the supply of oil in aircraft by 64.2% and in the sales of gasoline by 5, 8%, while there was a marginal increase in diesel sales by 0.9%. Regarding, in particular, the sales from petrol stations, they showed a decrease of 2.8% to 55,510 tons.
In October 2020, compared to September 2020, there was a decrease in sales of light fuel oil by 20.8%, gasoline by 11.8% and diesel by 7.4%. On the contrary, there was an increase in sales of clean and crude oil, heavy fuel oil, asphalt, as well as oil supplies to ships and aircraft.
Total oil reserves at the end of October 2020 decreased by 14.2%, compared to the end of the previous month. During the period January – October 2020, total sales of petroleum products decreased by 18.9% compared to the corresponding period of the previous year.
Also, in September 2020, total sales of petroleum products reached 110,854 tons, recording a decrease of 20.3% compared to September 2019. A decrease was observed in oil supplies to aircraft by 68.7% while there was an increase in sales of diesel by 7.0% and gasoline by 3.3%. Regarding in particular the sales from petrol stations, they showed an increase of 5.3%, to 60,710 tons.
Total sales of petroleum products in September 2020 compared to August 2020 increased by 16.8%. There was an increase in all fuels except oil supplies on airplanes. Indicatively, sales of gasoline increased by 9.6% and diesel by 20.9%.
Total oil reserves at the end of September 2020 increased by 0.7%, compared to the end of the previous month. During the period January – September 2020, total sales of petroleum products decreased by 18.6% compared to the corresponding period of the previous year.
The average prices
According to the Consumer Protection Service – Retail Fuel Price Observatory, on Thursday (07/01/2021), on a nationwide basis, Unleaded 95 had an average price of 1,069 euros, Unleaded 98 had 1,128 euros, diesel was at 1,101 euros, heating oil at 0.655 euros and kerosene 0.727 euros.
At European level, average fuel prices are much higher. According to data from the Commission, which are collected every week, on Monday (4/01/2021) the average price of Unleaded 95 in the Member States was 1,281 euros, diesel 1,159 euros and heating oil 0.654 euros. As for the eurozone, prices are rising relatively. Specifically, the average price of Unleaded 95 was at 1,325 euros, diesel at 1,179 euros and heating oil at 0,633 euros
How prices are formed
It is reminded that the retail prices of fuel in the pumps are formed by the cost of the product, the operating costs and the profit margins of the companies and service stations, the excise tax and other charges, which are fixed and calculated on the quantity (ie € per liter) , and value added tax (VAT).
These four factors contribute to the total price as follows: Product cost is about 34% of the price of fuel (in a given day), operating costs / profit of companies / service stations 12%, excise tax and other charges 38% and finally the VAT concerns 16%.
INDICATIVE FUEL PRICES ON 7/1/21
Unleaded 95
Average Price in € (Pancyprian): 1,069
Cheapest Price in € (Pancyprian): 1,015
Most Expensive Price in € (Pancyprian): 1,118
Unleaded 98
Average Price in € (Pancyprian): 1,128
Cheapest Price in € (Pancyprian): 1,065
Most Expensive Price in € (Pancyprian): 1,198
Diesel
Average Price in € (Pancyprian): 1,101
Cheapest Price in € (Pancyprian): 1,019
Most Expensive Price in € (Pancyprian): 1,152
Heating oil
Average Price in € (Pancyprian): 0.655
Cheapest Price in € (Pancyprian): 0.588
Most Expensive Price in € (Pancyprian): 0.899
Kerosene
Average Price in € (Pancyprian): 0.727
Cheapest Price in € (Pancyprian): 0.668
Most Expensive Price in € (Pancyprian): 0.899
