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Energy Shock Looms: Oil Price Surge Impacts Electricity – Forecasts for Cyprus by Economist Mario Clepidis

Published March 3, 2026, 17:14
Energy Shock Looms: Oil Price Surge Impacts Electricity – Forecasts for Cyprus by Economist Mario Clepidis

Europe is facing an energy crisis following the outbreak of conflict in the Middle East, with rising oil and natural gas prices. Economist Marios Clepidis analyzes the economic impact on philenews, pointing out that the duration and extent of the conflict will determine the scenarios for Cyprus. The increase in prices will affect electricity, given that the Electricity Authority of Cyprus (EAC) uses fuel oil. In addition, prices for alternative energy sources are also expected to rise. Regarding tourism, Mr. Clepidis does not foresee immediate danger, unless the situation escalates. Fuel prices may increase, although this depends on the reserves of oil companies. Finally, an increase in prices of basic products is expected, due to the increase in energy costs and its transfer to the real economy. Already, there are increases in fuel prices, with a 10-12% increase in supply prices, which will gradually be passed on to consumers. Oil companies assure that there is sufficient fuel supply and they can seek alternative sources of supply.