OIL importers yesterday denied that kerosene, used by many households for heating, would no longer be freely available on the market, attributing the recent shortages to the timing of shipments and a sequence of adverse events.
Media reports suggested that oil companies on the island would pull out of the kerosene-importing and distribution business because of the unprofitable overheads involved. As the fuel is used only during the winter, claimed reports, companies needed to place special orders for large amounts, which then create storage problems.
But industry representatives played down concerns, saying any shortages were simply due to the fact that stocks had not been replenished following the buying spree during the cold mid-November days. At the time, they explained, the government had just announced the price of oil would drop; everyone held out until the drop kicked in, and then descended on the gas stations en masse.
Kerosene stocks would be replenished within the next few days, a Lukoil representative told the Cyprus Mail.
By some estimates, around 15 to 20 per cent of households have central heating systems powered by kerosene. This fuel type is not used for heating purposes in other European countries, where diesel is preferred.
However, as one source said, even supposing the worst-case scenario – no more kerosene – all is not lost: it’s still possible to convert the system to burn crude oil, and the modification should not cost too much.
Moreover, in the long term using crude oil is cost-effective, as kerosene (having less sulfur content) is about three cents more expensive.
However, sources did confirm that Exxon Mobil, would no longer carry kerosene. The other oil companies – Lukoil, Petrolina and EKO – said they would continue providing the fuel as before.
There was some good news yesterday, with the government announcing imminent oil price drops, as international crude prices fell. Announcements from the major oil companies indicated consumers could expect an average price drop of up to two cents a litre as of today and tomorrow.
Not everyone was happy, though, as gas stations again complained that, by letting people know in advance about price cuts, their business would be hurt until the transition.
