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Fuel Prices Surge In Cyprus Amid Global Trends

by THEFUTURE.TEAM

July 3, 2024

Fuel prices in Cyprus are experiencing a significant increase, with projections indicating a rise of up to eight cents per litre in the coming month. The price hike, which began gradually last week, is attributed to the rising cost of crude oil globally, transferring the financial burden to consumers.

Impact on Consumers and Industry

The current surge has notably affected diesel prices, which have increased by approximately eight cents, while petrol prices have seen minimal changes but are expected to rise. This trend follows a period of declining prices, where petrol dropped from €1.572 to €1.491 and diesel from €1.596 to €1.527 over six weeks.

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Broader Economic Concerns

Consumer Association President Marios Drousiotis highlights concerns about the proportionality of these increases relative to actual global price changes, suggesting potential discrepancies in the local market’s response. The anticipated continuation of this upward trend poses challenges for consumers and businesses alike, underscoring the need for transparency and regulatory oversight in fuel pricing mechanisms.

Global Influences

The surge in fuel prices is a direct consequence of the increasing costs of crude oil on the international market. Factors contributing to this rise include geopolitical tensions, production cuts by major oil-producing nations, and fluctuations in global demand. These external variables create a complex environment for Cyprus, making it essential for policymakers to consider both domestic and international factors when addressing fuel price stability.

Future Outlook

As the upward trend in fuel prices is expected to persist, the Cypriot government and regulatory bodies must explore measures to cushion the impact on consumers. Potential solutions could involve subsidies, tax adjustments, or strategic reserves to mitigate the immediate financial strain on households and businesses. Additionally, enhancing public transportation infrastructure and promoting alternative energy sources may offer long-term relief by reducing dependency on fossil fuels.

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Competition Authority Launches Comprehensive Review of ExxonMobil Cyprus Acquisition

by THEFUTURE.TEAM

September 16, 2025

Investigation Initiated Over Strategic Acquisition

The Competition Protection Authority has commenced a thorough investigation into the acquisition of ExxonMobil Cyprus Limited’s share capital by Petrolina Holdings Public Ltd through Med Energywise Ltd. This inquiry was formally initiated following a session held on 10 September 2025, after an in-depth review of the pertinent report by the Authority’s Service.

Concerns Over Market Compatibility

Authorities have expressed serious concerns regarding the compatibility of the transaction with established competitive practices. The review indicates that the acquisition may affect several critical petroleum markets, both horizontally and vertically, thereby raising the potential for adverse impacts on market dynamics.

Horizontal Market Dynamics

On the horizontal front, potential effects have been identified in the import market for petroleum products, as well as in both wholesale and retail distribution channels of these products. The consolidation is believed to increase the risk of price rises and coordinated actions, given the direct competitive proximity between Petrolina and ExxonMobil.

Vertical and Adjacent Market Implications

Vertical aspects of the merger are also under close scrutiny. The new entity could restrict competitors’ access to critical infrastructure such as storage facilities, supply channels, and customer bases. These restrictions could further affect the onshore distribution of fuels, the wholesale market for lubricants, and specialized technical services connected with fuel station operations.

Local Market Considerations

Particular attention is being paid to the potential concentration in the retail fuel market. The investigation suggests that a reduced competitive landscape within a four-kilometer radius of the companies’ fuel stations could lead to diminished local competition, adversely impacting consumer prices and options.

Next Steps and Industry Impact

The Competition Protection Authority, which reached a unanimous decision to pursue a full investigation, remains open to submissions from parties that might be affected by this transaction, as mandated by current legislation. A final decision is expected within four months upon receipt of all necessary evidence, potentially setting a significant precedent for future market consolidation cases in the energy sector.