In Cyprus, Putting Politics to One Side for a Tank of Gas

Greek Cypriots no longer hesitate to go to the "occupied zone" to fill up with gasoline, taking advantage of a low Turkish lira.

Share:

In the divided capital of Cyprus, a line of cars waits at the checkpoint to cross to the north side.

Greek Cypriots no longer hesitate to go to the “occupied zone” to fill up with gasoline, taking advantage of a low Turkish lira.

The Turkish army invaded the northern third of the Mediterranean island in 1974 in response to a coup d’état by Greek Cypriot nationalists who wanted to reattach the island to Greece. And a Turkish Republic of Northern Cyprus (TRNC), where Turkish Cypriots live, was self-proclaimed in 1983, only recognized by Ankara.

If those who go to consume in the North are generally considered as “traitors” on the southern side, many Greek Cypriots have nevertheless taken the step.

The sharp fall in the Turkish lira and a drop in fuel taxes in the north have made gasoline prices very attractive, while in the south Greek Cypriots pay in euros and are experiencing inflation not seen since 1981.

– “Saving money” –

According to figures from the Greek-Cypriot police, the number of vehicles that used the road crossing points in the South/North direction tripled in one year, from 197,230 between January and August 2021 to 601,749 for the same period in 2022.

“I fill up there every week because with four children and a relatively low salary, I can’t make ends meet,” says a 45-year-old woman in her car at the Nicosia checkpoint.

She prefers to remain anonymous as do most of the motorists interviewed.

Going to the North allows you to take advantage of a price per liter of gasoline that is about 25% lower than in the South.

Usually, during off-peak hours, it takes about 10 minutes to switch from one side to the other.

The time to show his passport to the Greek Cypriot police before being registered a few dozen meters further by the Turkish Cypriot police.

For the past few months, it is not uncommon to have to wait half an hour to enter the “occupied zone”, as it is called by the Greek Cypriot government.

“My salary is only 700 euros. By filling up several times a month in the North, I can save 200 euros,” says Fanourios Michail, a 60-year-old carpenter.

“Greek Cypriots represent half of my clientele and my turnover,” explains Turkish-Cypriot Mehmet Tel, the manager of the K-Pet gas station located 500 meters from the crossing point.

This rush to buy gas in the North has triggered the ire of the Southern Gas Station Owners Association.

According to its spokesman Christodoulos Christodolou, this phenomenon would represent an annual loss of revenue of 7 million euros for owners of gas stations and 80 million euros in tax revenue on fuel for the Republic of Cyprus, member of the European Union.

– “Illegal” –

“We want this illegal phenomenon to stop and for the Green Line regulation to be applied,” Christodoulou told AFP, referring to the UN-controlled demilitarized zone that cuts the island in two.

This European regulation defines the conditions for the movement of people and goods between the two zones.

However, it stipulates that the movement of fuel from the “occupied territories” to government-controlled areas is prohibited, Christodoulou said.

The Association accuses the authorities of turning a blind eye to this phenomenon.

Allegations refuted by the spokesman of the Cypriot government Marios Pelekanos. Controls are carried out to “reduce illegal fuel movements while protecting tax revenues and reducing the impact on legitimate fuel suppliers,” he assures AFP.

Skeptical, Mr. Christodoulou said Wednesday at a press conference that his association had denounced to the EU the attitude of the government. After having “exhausted all possibilities of contact with the competent authorities”, it claims “compensation” from the State for “all
the damages suffered”.

The association also does not rule out contacting Frontex, the EU’s border control agency, for stricter controls on the Green Line, even though it is not legally a border.

Petro-Victory Energy announces the completion of drilling operations for the AND-5 well in the Andorinha field, Brazil, with positive reservoir results and next steps for production.
The Colombian prosecutor’s office has seized two offices belonging to the oil company Perenco in Bogotá. The company is accused of financing the United Self-Defense Forces of Colombia (AUC) in exchange for security services between 1997 and 2005.
Indonesia has signed a memorandum of understanding with the United States to increase its energy imports. This deal, involving Pertamina, aims to diversify the country's energy supply sources.
VAALCO Energy continues to operate the Baobab field by renovating its floating platform, despite modest production. This strategy aims to maintain stable profitability at low cost.
An empty reservoir exploded at a Lukoil-Perm oil facility in Russia, causing no injuries according to initial assessments pointing to a chemical reaction with oxygen as the cause of the accident.
The British Lindsey refinery has resumed fuel deliveries after reaching a temporary agreement to continue operations, while the future of this strategic site remains under insolvency proceedings.
BP and Shell intensify their commitments in Libya with new agreements aimed at revitalizing major oil field production, amid persistent instability but rising output in recent months.
The private OCP pipeline has resumed operations in Ecuador following an interruption caused by heavy rains, while the main SOTE pipeline remains shut down, continuing to impact oil exports from the South American country.
McDermott secures contract worth up to $50 million with BRAVA Energia to install subsea equipment on the Papa-Terra and Atlanta oil fields off the Brazilian coast.
Saudi Aramco increases its oil prices for Asia beyond initial expectations, reflecting strategic adjustments related to OPEC+ production and regional geopolitical uncertainties, with potential implications for Asian markets.
A bulk carrier operated by a Greek company sailing under a Liberian flag suffered a coordinated attack involving small arms and explosive drones, prompting an Israeli military response against Yemen's Houthis.
The Canadian government is now awaiting a concrete private-sector proposal to develop a new oil pipeline connecting Alberta to the Pacific coast, following recent legislation intended to expedite energy projects.
Petrobras is exploring various strategies for its Polo Bahia oil hub, including potentially selling it, as current profitability is challenged by oil prices around $65 per barrel.
Brazilian producer Azevedo & Travassos will issue new shares to buy Petro-Victory and its forty-nine concessions, consolidating its onshore presence while taking on net debt of about USD39.5mn.
Major oil producers accelerate their return to the market, raising their August quotas more sharply than initially expected, prompting questions about future market balances.
Lindsey refinery could halt operations within three weeks due to limited crude oil reserves, according to a recent analysis by energy consultancy Wood Mackenzie, highlighting an immediate slowdown in production.
The flow of crude between the Hamada field and the Zawiya refinery has resumed after emergency repairs, illustrating the mounting pressure on Libya’s ageing pipeline network that threatens the stability of domestic supply.
Libreville is intensifying the promotion of deep-water blocks, still seventy-two % unexplored, to offset the two hundred thousand barrels-per-day production drop recorded last year, according to GlobalData.
The African Export-Import Bank extends the Nigerian oil company’s facility, providing room to accelerate drilling and modernisation by 2029 as international lenders scale back hydrocarbon exposure.
Petronas begins a three-well exploratory drilling campaign offshore Suriname, deploying a Noble rig after securing an environmental permit and closely collaborating with state-owned company Staatsolie.