Rising fuel prices in Cyprus prompt government action and concern

Cyprus is facing renewed pressure on household finances as retail fuel prices continue to climb, driven by geopolitical instability and international oil market fluctuations. Following the recent US-Israeli military operations against Iran, the cost of petrol and diesel has seen significant spikes. Data from the Cyprus Consumers Association shows that fuel prices have risen in two distinct waves over the past six months, with March marked as a particularly sharp period of increase. Current market conditions, with crude oil trading above $90 per barrel, suggest further upward pressure on local prices as companies import new fuel supplies.

The government of the Republic of Cyprus is currently managing the crisis, with official measures for fuel and electricity cost relief set to expire on September 17. Minister of Energy Michalis Damianos stated that the government is exploring tools to mitigate the impact on consumers, as these international price surges remain beyond national control. Finance Minister Makis Keravnos announced that the government plans to extend the existing reduction in fuel consumption tax—which cuts excise duty by 8.33 cents per litre—for another one or two months. This extension is pending approval by the cabinet and parliament, with the new measure expected to take effect on September 18 to prevent a further automatic price hike.