The Cabinet on Wednesday decided not to extend the reduced excise tax rate on motor and heating fuels.
As of July 1, consumers will pay full taxes for fuel, Finance Minister Makis Keravnos said.
However, the Minister noted, the government – through the Electricity Authority of Cyprus – will continue subsidising electricity costs for low-income households, unemployed individuals, recipients of the minimum guaranteed income, multi-child families, single parents and farmers using pump stations.
This subsidy will be extended for another three months, costing the state a total of 2.5 million euros, Keravnos said.
The reduced excise tax rate was implemented in the aftermath of the invasion of Ukraine which led to spiking fuel prices and the EU relying less on cheaper Russian energy.
Currently, the Cypriot government subsides around 8.32 cents a litre on the price of motor fuels.
Therefore, based on current prices, the average cost of 95 octane unleaded petrol and diesel will rise from €1.38 per litre to €1.46 cents per litre.
The average price of heating oil will also increase by around 6.2 cents a litre to €1.03 cents a litre, up from today’s €0.97 cents.
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Reduced excise tax rate on motor fuel, electricity in Cyprus expires on June 30