The Cyprus Consumers Association has raised concerns about potential distortions in the fuel market, citing discrepancies in retail fuel prices for 2023-24.

According to the Association, significant differences exist in fuel prices across various provinces in Cyprus. Notably, in Nicosia, there is a substantial gap between the highest and lowest prices. As of September 11, 2024, the price difference for 95-octane gasoline was 21 cents per liter, for diesel 23 cents per liter, and for heating oil 25.8 cents per liter. On the same date in 2023, the corresponding price differences were 9.4 cents, 12.2 cents, and 17.2 cents per liter, respectively.

The Association also noted that the province of Famagusta has the smallest price difference between the highest and lowest prices.

It further pointed out that the highest and lowest retail prices are observed exclusively in Nicosia, while the province of Paphos has the highest average price for all types of fuel.

In conclusion, the Association stated that in Nicosia, at least, healthy competition does not seem to be at play. It added that the average profit margin granted by oil import companies to retail stations is 6 - 6.5 cents per liter.

"Under conditions of healthy competition, there should not be a price difference of up to 25.8 cents per liter for heating oil, 23 cents per liter for diesel, and 21 cents per liter for 95-octane gasoline," the statement said.

The Association noted that in its previous report, published on June 24, 2024, the price discrepancies for heating oil were also 25.8 cents per liter, while for diesel and 95-octane gasoline, they were 14 cents per liter.

"As observed, since our previous report on June 24, 2024, the price difference for diesel has increased by 64%, while for 95-octane gasoline, the difference has risen by 50%."

The Association questioned the argument presented by the Consumer Protection Service that large price discrepancies indicate healthy and intense competition. In the case of retail fuel prices, this does not appear to hold true.

It also pointed out that each province seems to have a different pricing policy, which should be investigated to understand the reasons for the variations.

The Association is calling for a thorough investigation by the relevant authorities, noting that signs of distortions in the fuel market are becoming increasingly evident.