Cyprus extends fuel excise duty reduction until September 17

The Cyprus government has extended the reduced fuel excise duties until September 17 to mitigate the impact of fluctuating energy prices. While the Cabinet had originally approved an extension until August 31, the government agreed to add an extra 17 days following a request from political parties. This measure maintains the current reduction of 8.33 cents per litre on petrol and six cents per litre on diesel. The adjusted excise duty is set at €0.359 per litre for petrol and €0.33 per litre for diesel. The total cost of this extension is estimated at €15.5 million by the Ministry of Finance, while previous reports cited an estimated cost of €12 million for the shorter period. Government officials stated that global market prices have not yet reached a point of stabilisation despite recent de-escalation in the Middle East. The reduction is part of broader anti-inflationary efforts, which have previously included zero VAT rates on essential food items and the deferral of environmental levies.