Dropping Oil Prices Enable Car Hire Customers to Enjoy Lower Fuel Costs in CyprusPhoto courtesy Calum Davidson/Flickr
Historically, oil prices have always been unpredictable, and have a tendency to fluctuate without much prior warning. Its something that we are all too familiar with; as we watch petrol prices rise, then fall, then inevitably rise once more!
However, in the last six months, oil prices have quite literally crashed, falling from $115 a barrel in July 2014 to just $60 a barrel in December. It’s quite an unprecedented drop, and already, oil experts are eagerly trying to predict whether the prices will rise once more, or remain low.
What is the Reason for the Drop in Oil Prices?
The rise in oil prices last summer was due largely to the conflict in Iraq, which restricted access to oil supplies, causing demand (and subsequently prices) to climb. The reason for the fall in price is less clear, though experts suggest that there may be political reasons for the US and Saudi Arabia to keep costs low. There is also speculation that demand is lower than it has been in previous years; as more people turn to renewable forms of energy to power their homes and businesses.
by Bloomberg Business
What is the Prediction for the Future?
Ultimately, no-one knows for sure exactly how the oil market will behave. Many speculate that the low prices cannot last forever, and that cost will start to rise within the next few months. Others predict that the reduced price should last a little longer than that. Either way, for those who rely on oil for business or personal purposes, now is the time to purchase as much as possible.
The Effect on Petrol Prices in North Cyprus
As you might expect, North Cyprus has seen a significant drop in fuel prices in the last six months, which has been welcomed by all car owners in the region. Visitors are often pleasantly surprised by the fuel prices when they stay in North Cyprus (prices are often cheaper than countries such as the UK) and they are likely to be even more delighted with the current low rates!
If you’re using a car hire service in Cyprus, then its a great time to benefit from the low petrol prices. There are other ways that you can keep your fuel consumption as low as possible, such as:
- Planning your route before departing. It is great fun exploring the island, but if you get lost, you will then need more fuel to find your way back again. Planning the route before setting out minimises your chances of wasting precious petrol.
- Mountains use more fuel than flat roads. The mountainous regions of the country are beautiful. However, be aware that you will use a lot more fuel powering your way up a mountain route than you would driving along a flat country road.
- Air conditioning uses up fuel. Sometimes, when the weather is hot, it’s a welcome relief to turn on the air conditioning. However, be aware that this uses up petrol, and that sometimes its just as pleasant to simply roll the windows down, particularly if you’re driving in the country or by the coast.
To find out more about our cars for hire, and current petrol prices in northern Cyprus, simply contact the Pacific Rent A Car team today.