Cyprus fuel prices surge as Iran conflict sends oil costs soaring

Fuel prices in Cyprus have surged to near-record levels since the outbreak of the military conflict in Iran, with further increases expected at the pumps within days as global oil markets remain under severe pressure.

Brent crude has doubled in a month to $110 a barrel, while attacks on energy infrastructure have disrupted supply.

Cyprus, which imports refined petroleum products and prices them against the daily Platts Basis Italy index, has seen that benchmark move sharply since 27 February, the day before military operations began: unleaded 95 petrol is up 61%, diesel up 93% and heating oil up 85%. Brent crude itself is up 51% over the same period.

Retail prices have already reflected much of that shift. According to data from the Retail Price Observatory, unleaded 95 petrol has risen by 14.7 cents per litre since 27 February to €1.461, diesel by 24 cents to €1.650, and heating oil by 20.2 cents to €1.151.

The highest diesel price recorded island-wide has already reached €1.719 per litre, squeezing transport operators and pushing up production and logistics costs. The highest petrol price stands at €1.546.

Konstantinos Karagiorgis, director of the Consumer Protection Service, told Phileleftheros that the Platts index movements were a precursor to further price increases at the pumps in the coming days, as domestic retail prices adjust to wholesale changes on a weekly basis with a short lag.

Current prices are approaching or exceeding the levels seen during previous crises. Unleaded petrol at €1.461 is already above its March 2022 level of €1.442 — when the government was forced to cut excise duty — though still below the November 2023 peak of €1.550. Diesel at €1.650 is above March 2022 (€1.500) but below November 2023 (€1.709). Heating oil at €1.151 is above March 2022 (€1.025) but below November 2023 (€1.240).

The scale of the increases is already prompting expectations of government intervention. A broad-based cut in excise duty, similar to the measure applied in 2022, is seen as likely if the price surge continues, given the risk that rising fuel costs will feed through to the price of basic goods across the economy.

The average retail price of 95-octane petrol in Cyprus for 2026 to date stands at €1.330 per litre. In March 2026 it averaged €1.363, up 5.1 cents or 3.87% from February’s €1.312. Average diesel for the year stands at €1.418 per litre, with the March average at €1.490 — up 9.3 cents or 6.67% from February’s €1.397.