Cyprus parliament extends fuel tax reduction until August 2026

The Cyprus House of Representatives unanimously approved with 38 votes a legislative amendment to the Excise Duty Law, extending the reduced consumption tax on motor fuels for two additional months, from July 1 to August 31, 2026. The bill was submitted by the Ministry of Finance and processed under an emergency procedure following an extraordinary session of the Parliamentary Committee on Finance and Budget. The fiscal cost of this extension is estimated at €12 million. This measure, originally introduced in April 2026 as part of an eight-point support package worth €200 million, aims to alleviate the financial burden on citizens and businesses amid energy price volatility linked to geopolitical tensions. Government Spokesperson Konstantinos Letymbiotis stated that although global energy prices have shown a downward trend, they remain above normal levels due to the ongoing conflict in the region. The reduction maintains the tax at lower rates, specifically 8.33 cents per litre for petrol, to provide economic relief.