Cyprus Consumers Face New Wave of Price Increases Ahead of Christmas

Consumers in Cyprus are bracing for a new wave of price increases that will exacerbate an already heavy cost-of-living burden. Market representatives warn that heating oil prices, which have risen steadily over the past three months, may surge even higher during winter.

The current price of 95-octane unleaded petrol in Cyprus has climbed to €1.70 a litre, while diesel has surpassed the psychological threshold of €2 a litre. Heating oil has reached €1.60 a liter, prompting industry estimates that filling a tank could now cost around €1,610, up from approximately €960 last year.

Analysts believe that uncertainty and instability on the international stage are fueling inflation and driving up energy costs, which will likely be passed on to consumers in higher retail prices. The European Central Bank has raised interest rates twice this year, with a third increase possible in October, potentially taking rates to 2.75% from the current 2.50%.

Higher production costs are expected to push food prices up further, particularly for flour and baked goods, which could rise by between 10% and 12% due to increased grain prices and transport costs. Market representatives are urging the government to introduce relief measures, including a reduction in VAT on fuel.