Cyprus fuel prices are still well below their Iran war peak, and falling further as international oil markets stabilise, even as the government extends its excise duty cut through to the end of August at a cost of €12 million.
Brent crude has dropped below $75 per barrel following the easing of US-Iran tensions, with retail prices in Cyprus tracking the decline. Navigation through the Strait of Hormuz, whose disruption triggered the original price spike, has yet to be fully restored.
The Council of Ministers yesterday approved the continuation of the reduced excise duty on motor fuels — a cut of 8.33 cents per litre — from 1 July to 31 August 2026. Government Spokesperson Konstantinos Letymbiotis said the decision reflected the fact that although energy prices were easing, they remained above normal levels.
What drivers are paying
The average price of unleaded 95 across Cyprus currently stands at €1.538 per litre, with the cheapest station on the island selling at €1.469 and the most expensive at €1.639. Diesel averages €1.682 per litre, ranging from €1.585 at the cheapest station to €1.807 at the most expensive.
Had the Council of Ministers not extended the tax cut, the average price of unleaded 95 would today stand at €1.621 per litre and diesel at €1.765.
How far prices have fallen
The numbers show how far prices have come down since the Iran war sent them surging. The day before the war began — 27 February 2026 — the average petrol price stood at €1.314 per litre. By 3 April, the day before the excise cut took effect, it had reached €1.593, a rise of 27.9 cents per litre. Since the cut came in, petrol has fallen back by 5.5 cents per litre.
Diesel tells a sharper story. From €1.410 per litre in February, it hit €1.919 by early April — a surge of 50.9 cents. It has since fallen by 23.7 cents per litre.
How Cyprus fuel prices are set
Cyprus imports refined petroleum products — petrol, diesel, and heating oil — with prices benchmarked against the daily Platts Basis Italy index. Retail prices are also shaped by company stock levels at the time of import, the dollar exchange rate, and state taxes.
The Platts index for unleaded 95 has been on a falling trend from February to June 2026. Over the same four-month period, the average crude oil price rose from €0.362 to €0.472 per litre, a change of €0.110 or 30.40%. The Platts price for unleaded 95 rose from €0.430 to €0.616 per litre, a rise of €0.186 or 43.17%.
The original excise duty cut formed part of a broader government support package targeting families, workers, and businesses during the period of elevated energy prices caused by the Iran war.
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