From Hormuz to Corfu’s petrol pumps

The distance from the Strait of Hormuz to Corfu is thousands of kilometres. But when it comes to the price of petrol, it could prove to be much shorter.

The latest escalation in the US–Iran conflict comes as Corfu is already facing high fuel prices. According to the latest data from the Fuel Price Observatory, the average price of regular 95-octane unleaded petrol in the prefecture stands at €2.146 per litre, with the highest recorded price reaching €2.329. By comparison, the average price in Athens is €2.086.

Differences between filling stations in Corfu are already noticeable. On 8 and 9 September, unleaded petrol prices ranged from around €2.084–€2.094 at stations in the wider town area to €2.20 and above in other parts of the island.

And now comes the international turmoil.

Its significance for Corfu goes beyond the extra euros drivers will need to fill up their cars or motorbikes. On an island that relies heavily on transport for its supplies, higher diesel prices could feed into the cost of almost every product arriving by lorry and ship.

More expensive transport means greater pressure on food, building materials, goods and services. And for businesses bringing the summer season to a close, another increase in energy costs comes on top of an already high operating cost base.

An increase in the international price of oil does not translate directly or overnight into higher prices at the pump. Retail prices are affected by the cost of refined products, stock levels, the euro–dollar exchange rate, market margins and taxation.

But Corfu is entering this new crisis already above an average of €2.14 per litre.

That is why the question is no longer whether a war thousands of kilometres away affects the island.

It is how much the next price on the filling station sign will show — and how much of that increase we will find, a little later, back on the shelves.

GIORGOS KATSAITIS