Cyprus parliament extends fuel tax reduction

The Parliament of Cyprus voted unanimously on September 17, 2026, to extend the reduction of the excise duty on motor fuels. The legislation, which was processed as an urgent matter during the first plenary session following the summer break, ensures that a relief of 8.33 cents per liter on gasoline and diesel will remain in effect until November 30, 2026.

The measure, originally implemented in April 2026, was set to expire on the day of the vote. The decision to extend the subsidy was driven by international economic conditions and geopolitical tensions in the Middle East. While 43 lawmakers voted in favor of the extension, the parliamentary discussion included proposals from opposition figures, such as Yiannis Louris of the Direct Democracy party, who suggested that the reduction should become permanent and advocated for the removal of VAT on the excise duty to prevent double taxation.

The Ministry of Finance indicated that it will continue to monitor international energy prices to determine if further extensions are necessary beyond November. Government officials emphasized that Cyprus currently maintains the lowest excise duty on fuel permitted under European directives, providing necessary support to local households.