The government will next month invite tenders for the development of a new system monitoring retail fuel prices that will use artificial intelligence to track irregular market fluctuations, the energy minister told MPs on Thursday.

“When I first came to the ministry I saw an outdated way of monitoring fuel prices,” George Papanastasiou said.

In March the ministry will issue a tender for the design and deployment of a pricewatch system based on artificial intelligence. The algorithms would monitor each supplier as well as fuel prices in real-time, and action would be taken wherever ‘unusual’ fluctuations are spotted.

The minister said the software would track the behaviour and movements of fuel companies. Whenever “a strange move occurs where someone tries to take advantage of circumstances in the global market”, the matter would be taken up by the Consumer Protection Service.

The new system would track why, whenever fuel prices drop globally, retail prices at petrol stations do not follow suit quickly, whereas global increases are instantly reflected at the pump – the so-called ‘rockets and feathers’ phenomenon.

“We’ll be able to pick up on this peculiar conduct,” Papanastasiou remarked.

Asked by MPs about the different prices at petrol stations, the minister said companies in Cyprus buy mainly from two sources – refineries in Haifa in Israel and Aspropyrgos in Greece.

One explanation for the price variations is the different transport costs, depending where an importer buys the fuel.

Elsewhere the minister addressed claims that people are getting inflated electricity bills due to cuts to photovoltaic systems. He said this was not accurate.

During 2024 only 1 per cent of production from household photovoltaics was ‘lost’, he added. This corresponded to between €3 and €4 per electricity bill.

The minister speculated on what may be happening – after a photovoltaic system is ‘cut’ the transformer fails to restart. He urged people with such systems to check the transformer.

MPs also brought up the issue of the resale of permits for solar parks, leading to the emergence of an informal ‘black market’.

Papanastasiou promised that this practice would stop. He said the energy regulator intends to prohibit the resale of such permits. The permits would be voided where the solar park investment is not implemented within a certain timeframe.

During the discussion at the House audit committee, a commerce ministry official briefed MPs on the state of exports and imports.

He said the latest data show exports overall come to €4.7 billion. Domestic exports account for €2.4 billion, with the main export products being halloumi cheese, medicines and fruit juices. The rest comprises transit trade.

Imports come to €12.9 billion – meaning Cyprus has a trade deficit.