Fuel prices in Cyprus are “not at a bad level” and current increases do not appear to be driven by profiteering, Energy Minister Michalis Damianos said on Monday, while officials also signalled possible small reductions in the near future.

Damianos said fuel prices largely depend on developments in the Middle East conflict, and warned that even if the war were to end, prices are unlikely to return to previous levels due to the destruction of key infrastructure in the region.

“The issue is not supply, it’s prices,” he said.

Speaking to the Cyprus Mail in March, the minister said Cyprus faces no immediate risk to fuel supply, as it sources its imports from Israel and Greece and maintains the EU-mandated 90-day reserves, but he warned that global energy costs are likely to remain elevated for years due to disruption in production across the Middle East.

While acknowledging recent increases, on Monday the minister said fuel prices in Cyprus are helped by a government reduction in excise duty aimed at easing the burden on consumers.

“The Consumer Protection Service carries out daily checks so that, wherever any irregularities are observed, we can examine how to address them,” he said, adding that current price rises appear to reflect broader regional conditions rather than profiteering.

Damianos underlined that there is sufficient fuel supply for both summer and winter, though authorities are continuing to plan ahead depending on future developments.

He noted that the issue will be discussed at Wednesday’s informal meeting of EU energy ministers to be held in Cyprus, in the presence of the European Commissioner for Energy.

“These are matters we must manage, and we are discussing them at European level,” he said, pointing to possible solutions including more efficient energy use to help keep prices down for both consumers and businesses.

Damianos reiterated that even if the conflict ends, a rapid return to pre-war fuel prices would be difficult.

“It will be difficult to see an immediate reduction to pre-war price levels,” he said, adding that coordinated European action is essential as Cyprus cannot tackle the issue alone.

Meanwhile, the Consumer Protection Service said there are indications that small reductions in fuel prices may be seen in the coming days.

Director Constantinos Karagiorgis said that although the service avoids making forecasts, it continuously monitors and analyses international market data and import prices.

“Based on current indications, small decreases in fuel prices are expected, particularly for diesel, in the near term,” he said.

However, he warned that uncertainty and volatility continue to dominate the global fuel market, largely due to developments and statements linked to the conflict involving Iran.

“This situation is causing constant fluctuations in both crude oil prices and refinery prices,” he said.

Karagiorgis added that recent declines in benchmark prices are expected to begin filtering through to retail fuel prices, especially for diesel, in the short term.

“As the competent authority monitoring the market and prices, the service wishes to assure consumers that it closely follows developments and will not allow any phenomena that operate to the detriment of consumers,” he said.