In practical terms, it is only a matter of time before Cypriot consumers once again face higher prices for fuel and electricity, with knock-on increases across many other sectors. Nothing has changed since the previous energy crisis in the country’s energy balance, which remains heavily dependent on conventional fuels.
The first week of the war in the Middle East found Cyprus, once again, debating the country’s resounding failure to implement a viable civil protection plan, leaving citizens feeling, and in reality being, exposed. The government’s hurried attempts to cover up the mess, resorting to conventional SMS alerts to compensate for the glaring absence of the 112 emergency warning system, and the pledges to inspect and upgrade civil defence shelters, most of which cannot currently be used for that purpose, neither convince nor reassure the public.
And while bombardments continue across the wider region, with no one able to guarantee that the conflict will end soon, it is only a matter of days before the public debate shifts to another glaring gap. For decades this has drained the finances of Cypriot households and undermined the competitiveness of Cypriot businesses: the persistent failure of successive governments to design and implement a realistic strategy capable of providing citizens and businesses with energy security alongside affordable and green electricity.
On Monday, as the war pushed towards the closure of the Strait of Hormuz, oil prices rose above 100 dollars per barrel for the first time since 2022, the year Russia invaded Ukraine. Yesterday, reassuring statements by Donald Trump that the war in Iran could end soon offered some relief to markets, leading to a modest drop in oil prices. Yet uncertainty remains the dominant force shaping developments.
In practical terms, it is only a matter of time before Cypriot consumers once again face higher prices for fuel and electricity, with knock-on increases across many other sectors, as nothing has changed since the previous energy crisis in the country’s energy balance, which remains hostage to conventional fuels.
The situation for Cypriot citizens would be different if, first, the transition to natural gas had already taken place. Its price is, of course, vulnerable to international developments, but at current levels it remains around 20 percent cheaper, meaning electricity prices would also be roughly 30 percent lower thanks to reduced emissions costs. Second, if the country had developed energy storage infrastructure, the solar power that is currently curtailed as surplus to maintain grid stability would provide Cyprus with a degree of autonomy and, at the very least, help soften electricity price increases driven by global conditions.
The issue of expensive fuel and electricity is therefore returning once again, with the state offering no real answers. It is an issue that will once more become the subject of pre-election exploitation, while citizens are left to bear the cost of delays and the inability of those responsible to act.