Cyprus fuel prices rise as government moves to extend tax relief

Fuel prices in Cyprus have experienced upward pressure due to a rapid increase in international oil prices, which rose from $80 to over $90-$91 per barrel within one week. Christodoulos Christodoulou, Vice President of the Pancyprian Association of Petrol Station Owners, noted that while small increases have already been recorded, the exact impact on the domestic market remains uncertain as companies adjust to new shipment costs.

Concerns had been raised that the scheduled expiration of the reduced excise duty on September 17 would lead to an automatic increase of 8.33 cents per litre, potentially pushing diesel prices toward €2 per litre. However, during a parliamentary energy committee session on September 1, a Ministry of Finance representative confirmed that the government has decided to extend the tax relief measure.

The legislative draft for the extension, intended to last until the end of November, has been approved by the Minister of Finance. It is expected to be submitted to the Council of Ministers and subsequently to the House of Representatives before the September 17 deadline to ensure the subsidy remains in effect without interruption.