The government is weighing whether to extend cost-of-living support measures beyond their 1 April deadline as it monitors the economic impact of the Middle East war, government spokesman Konstantinos Letymbiotis said on Tuesday.
Asked about rising fuel and energy prices, Letymbiotis said the situation was being continuously assessed and that decisions on any new support measures would follow. How much damage is done, he added, would depend on how long the regional crisis lasts — not just for Cyprus but globally.
For now, the electricity subsidy remains in place and the zero VAT rate on essential goods is still in force. On fuel specifically, Letymbiotis said the government’s latest figures show unleaded 95 petrol is currently the second cheapest in the EU, with diesel the fourth cheapest. Asked whether the reduced VAT measures due to expire on 1 April would be extended, he said “everything is being evaluated,” with both the Finance Ministry and the Ministry of Energy, Commerce and Industry involved in the process. Decisions, he said, would be announced at the appropriate time.
Letymbiotis said the government’s strong fiscal position gave it the capacity to act. “Strong fiscal headroom and a solid economic foundation allow the government to take measures that support society and citizens,” he said.
He also hit back at criticism that the government had exploited the regional crisis for communications purposes, sending a damaging message abroad that was hurting tourism. The charge, he said, misrepresents what happened: the government acted to safeguard the country and its citizens in the face of a regional crisis on Cyprus’s doorstep, and European partners — whom he thanked for their swift response — had backed those efforts with practical support.
On aviation, Letymbiotis said flight disruptions in the opening days of the crisis had been inevitable, affecting the whole region rather than Cyprus alone. The vast majority of schedules have since been restored, he said, with only states at the centre of the conflict still affected — a development he described as very positive. He expressed optimism about the 2026 tourism season, saying Cyprus remains a quality destination and that the government’s efforts are focused on keeping it that way.
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