Electricity prices in Cyprus are expected to rise significantly in the coming months, with projections pointing to an increase of up to 20% by August. According to the state electricity supplier, the upward pressure comes mainly from rising oil prices linked to tensions in the Middle East. The impact will begin to be felt as early as May, when household bills are likely to increase by between 5% and 7%.

The forecasts are based on oil prices ranging between 110 and 115 dollars per barrel, with fuel costs forming a major share of electricity production expenses. The company noted that its current fuel reserves can cover nearly two months of consumption, while a new delivery is expected at the beginning of April. At present, Cyprus is sourcing fuel imports from European countries such as Spain and Italy, rather than relying on supplies from the Persian Gulf.

The government is preparing to discuss possible measures to soften the effect of higher electricity prices at an upcoming meeting. Among the options under consideration are subsidies for both households and businesses, in line with measures supported at the European level. The European Commission has already indicated that such support could be part of immediate actions to address rising energy costs.

Support for vulnerable consumers remains in place, as the electricity subsidy scheme introduced last year is set to continue until the end of 2026. Authorities are aiming to balance rising production costs with measures that limit the financial burden on consumers as energy markets remain volatile.