Fuel prices in Cyprus are set to rise further as tensions in the Middle East continue to escalate, following drone attacks and missile strikes in the Persian Gulf. The ongoing disruptions in shipping through the Strait of Hormuz, which handles 20% of the world’s oil and liquefied natural gas, have driven up fuel prices, exacerbating concerns over inflation.
According to sources, from February 27 to March 3, the price of fuel at international refineries increased as follows:
Unleaded petrol rose by 14%.
Diesel increased by 35%.
Heating oil rose by 32%.
Brent crude oil prices climbed by 15%.
These increases are expected to lead to a rise of 6 to 7 cents per litre in fuel prices in Cyprus once new shipments arrive. On March 3, the average price for 95-octane unleaded petrol was €1.326 per litre, diesel was €1.428, and heating oil stood at €0.960.
Recent price hikes
Compared to last month, retail fuel prices have already gone up. Between February 4 and March 4, 2026, retail fuel prices changed as follows:
Unleaded petrol increased by 1.2 cents, from €1.314 to €1.326.
Diesel rose by 4.4 cents, from €1.384 to €1.428.
Heating oil went up by 3.1 cents, from €0.929 to €0.960.
These increases are expected to continue, as new shipments of fuel are anticipated to arrive at higher prices. Factors such as currency exchange rates, regional developments, and rising insurance premiums for fuel transport contribute to these price hikes.
Yesterday, one oil company raised its fuel prices by 1.5 cents per litre, and further increases are expected from other companies in the coming days. Price discrepancies are likely to be observed at petrol stations over the next 24 hours.
Consumer Protection oversight
The Director of the Consumer Protection Service, Konstantinos Karayiorgis, stated that the service will closely monitor the market for unjustified price hikes, and legal measures will be taken where necessary. During the 2022 Russian invasion of Ukraine and the resulting energy crisis, the government applied a reduced consumption tax rate on fuel to alleviate economic costs. The reduced tax rate, which amounted to a decrease of 8.3 cents per litre for petrol and diesel, and 6.3 cents per litre for heating oil, was in effect for approximately two years.
With the continued rise in global oil prices, it is expected that electricity costs will also increase. The government’s subsidy for electricity, which is currently available to vulnerable groups, will continue through the end of the year. Previously, the government had applied a temporary reduction in VAT on electricity from 19% to 9%, but this measure has since been targeted at specific groups.