Fuel prices are expected to rise immediately following the escalation of conflict in the Middle East, with local market representatives warning of wider economic repercussions if instability persists.
According to the president of the Thessaloniki Fuel Retailers Association, Christos Stavrakis, the market has already priced in a sharp increase in crude oil, with forecasts placing it above 80 US dollars per barrel, up from 70 to 72 dollars before the weekend and the outbreak of hostilities involving Iran, the US and Israel. Speaking to Voria, he estimated that fuel prices could increase by 2 to 3 euro cents per litre "even from today" for stations receiving new deliveries. Refinery price rises, he noted, began last week.
In practical terms, unleaded petrol in Thessaloniki is expected to rise from around 1.75 euros per litre to 1.77 to 1.78 euros in the coming days, with further increases if tensions escalate. Consumers, already facing cost-of-living pressures, may therefore see a fresh wave of price hikes.
A key variable, industry insiders stress, is the potential closure of the Strait of Hormuz, the strategic maritime corridor between Oman and Iran through which roughly one-fifth of global oil consumption passes. Under normal conditions, more than 20 million barrels of crude oil, condensates and fuels transit the strait daily.
"Everything will depend on the duration of the conflicts", Stavrakis said. "However, the closure of the Strait of Hormuz triggers terrifying scenarios for oil prices. We hope that, in at least one scenario, the price of crude oil will not exceed 100 US dollars. What is certain is that the price of crude oil will certainly reach 85 to 88 dollars per barrel." If fighting continues, he warned, there will be "chain negative effects on the market".
By Lina Tsireka - adapted from Greek by Vassia Barba
