Fuel prices in Cyprus surge as EU-wide energy market tensions persist

Eurostat data for August 2026 shows a sharp rise in fuel prices in Cyprus, with diesel increasing by 11.3% and petrol by 6.2% compared to July. This represents one of the steepest monthly increases within the European Union, contributing to a 19.1% year-on-year rise in fuel and lubricant costs for local consumers. Across the EU, petrol prices increased by 3.3% and diesel by 8.3% during the same period.

Energy expert Charalambos Ellinas and other analysts attribute these price hikes to global supply disruptions, specifically damages to Russian refineries from Ukrainian drone strikes, reduced exports from the Persian Gulf, and instability in Libya. These factors, combined with increased transportation costs, have led to predictions that diesel prices in Cyprus could climb to between €2.10 and €2.20 per litre in the coming months, with high costs potentially persisting until mid-2027.

In response to public outcry and opposition criticism from AKEL, which accuses the government of inaction, Finance Minister Makis Keravnos stated that the administration is monitoring the situation and preparing additional support measures. These proposals are scheduled for discussion during a cabinet meeting on September 30. Despite official claims that Cyprus currently maintains some of the lowest pump prices compared to the EU average, many households and businesses report severe economic pressure, prompting calls for permanent tax reductions.