A cut of 8.33 cents per litre in Cyprus’s fuel excise duty takes effect on Saturday — but with petrol up 27.4 cents and diesel up 47.7 cents per litre since the outbreak of fighting between the US, Israel and Iran, the reduction will do little more than partially offset recent increases.
Parliament approved the measure unanimously on Thursday as part of a package adopted by the Council of Ministers to address the economic fallout from the Middle East war. It runs until the end of June, with the government indicating it may be extended.
The excise duty on petrol falls from €0.429 to €0.359 per litre and on diesel from €0.40 to €0.33 per litre, inclusive of VAT. At Thursday’s prices, the average pump price of 95-octane unleaded would edge down from €1.588 to €1.579 per litre, while diesel would fall from €1.887 to €1.803 per litre. The fiscal cost is estimated at €18.6 million.
MPs round on government over delayed bill
Several MPs criticised the government for announcing the measures on 26 March but waiting a week before submitting the bill to parliament, saying the delay gave some operators the opportunity to raise prices unjustifiably.
AKEL MP Andreas Kafkalias said the late submission had given fuel professionals time to absorb the reduction before it came into force.
Christiana Erotokritou, chair of the Finance Committee and DIKO MP, said many were exploiting tax reductions for their own benefit and called on the Energy Ministry’s Consumer Service to intervene.
DISY MP Onoufrios Koulla called on the consumer protection service to act against profiteering, saying the situation required seriousness and responsibility from all sides despite the approaching elections. He also called for targeted additional measures for vulnerable groups and tourism businesses.
ELAM MP Sotiris Ioannou said taxes account for 40 to 50 per cent of the final fuel price and warned that the state was losing millions in tax revenue because many Greek Cypriots were travelling to the occupied north to buy fuel.
EDEK MP Marinos Sizopoulos called for meaningful supervision and checks and urged the government to consider reducing VAT on fuel, citing unfair competition from the occupied north where fuel is managed by the occupation army.
Further increases on the way
Prices are expected to keep climbing. Oil rose above $105 per barrel on Thursday following an address by US President Donald Trump.
Cyprus remains among the cheapest places in the EU to buy fuel. In early 2026, the average price of 95-octane petrol stood at €1.343 per litre and diesel at €1.442, according to European Commission data — with the Energy Ministry’s Consumer Protection Service ranking Cyprus third cheapest among member states for both fuels.
By comparison, 95-octane petrol averaged €2.089 per litre in the Netherlands, €1.975 in Denmark, €1.876 in Germany, €1.863 in Finland and €1.780 in Greece. Diesel stood at €1.952 in the Netherlands, €1.924 in Finland, €1.879 in Denmark and €1.823 in Germany.