Rising fuel prices in Cyprus and upcoming tax policy changes

Fuel prices in Cyprus are experiencing significant upward pressure due to geopolitical instability, specifically the recent US-Israeli military operations against Iran and rising global oil costs, which have reached $90-$91 per barrel. As of September 5, 2026, the average price for 95-octane petrol stands at €1.619 per liter, while diesel averages €1.876. According to the Cyprus Consumers Association, prices have risen in two waves over the last six months, with diesel increasing by 45 cents (31.8%) and petrol by 29.2 cents (22.2%) since the start of the conflict.

The situation is further complicated by the impending expiration of the reduced excise tax on fuel on September 17, 2026. If the government decides not to extend this measure, consumers face an automatic price hike of 8.33 cents per liter for both petrol and diesel. Additionally, the government is expected to align with a new European directive by January 1, 2028, which is projected to trigger further significant price increases. Local fuel station owners noted that international price fluctuations make future costs difficult to predict until new shipments are received at higher global market prices.