Cyprus is cutting excise duty on motor fuels from 1 April through June 2026 after petrol and diesel prices surged sharply in a single month — diesel recording a record rise of 34.8 cents per litre.
The reduction of 8.33 cents per litre brings excise rates to the minimum levels permitted under EU law. Petrol excise duty falls from €0.429 to €0.359 per litre; diesel from €0.40 to €0.33 per litre. According to government sources, the cut will reduce petrol costs by 5.9% and diesel costs by 5.1%, with average prices expected to stabilise at €1.43 per litre for unleaded 95 and €1.67 per litre for diesel.
The measure was driven by Retail Price Observatory figures covering just four weeks — 27 February to 26 March. Unleaded 95 jumped 20.2 cents from €1.314 to €1.516 per litre. Diesel surged a record 34.8 cents from €1.410 to €1.758. Heating oil rose 27.7 cents from €0.949 to €1.226.
The spike reflects an extraordinary run-up in international markets. Since late February, Platts data shows unleaded 95 up 50%, diesel up 83%, heating oil up 76% and crude oil up 57%. Brent crude is currently trading at $100 per barrel.
Against this backdrop, current retail prices before the new cut tell a mixed story compared with previous years. Petrol at €1.516 per litre is still slightly below its November 2023 level of €1.550, while diesel at €1.758 has moved clearly above the €1.709 recorded in the same period.
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