Cyprus motorists saw the first significant relief at the pumps from midnight as an emergency reduction in consumption tax took effect.
The 8.33 cent per litre cut follows urgent legislation pushed through parliament on Thursday by the Council of Ministers. The move aims to decompress prices after a period of rapid increases that saw diesel “flirting” with the psychological barrier of €2 per litre at several locations.
Based on Friday’s average prices, the 95-octane petrol price is expected to settle at approximately €1.50 per litre, while diesel should fall to roughly €1.83 per litre.
The intervention comes after a month of extreme volatility where diesel prices surged by 50 cents and petrol by 30 cents. These hikes are largely attributed to geopolitical instability and the conflict involving Iran, which has pushed international Brent crude prices to $109 per barrel. Experts warn that any further escalation between the US, Israel, and Iran could sustain this inflationary wave.
Since the outbreak of the conflict, the effects on local fuel costs have been drastic. Unleaded 95 has risen by 27.8 cents per litre, diesel by 50.5 cents, and heating oil by 40.3 cents.
Data from the Retail Price Observatory on Friday revealed massive price fluctuations between petrol stations, with differences reaching up to 20 cents per litre. For Unleaded 95, the average price stood at €1.592, with the lowest at €1.527 and the highest at €1.678. Diesel averaged €1.916, ranging from €1.788 to €1.997, while heating oil averaged €1.353.
Constantinos Karageorgis, Director of the Consumer Protection Service, stated that the market is being monitored daily. He noted that “for the time being, no overcharging by companies has been identified,” attributing the hikes to international uncertainty. He urged citizens to research the market to find the cheapest points of sale.
The Consumer Protection Service confirmed it will be on the ground from today to ensure the 8.33 cent reduction is applied across all petrol stations in Cyprus. The tax cut is scheduled to remain in effect until 30 June 2026, at a total fiscal cost of €18.6 million.