Cyprus government evaluates potential new energy support measures

The Cypriot government is currently processing potential new support measures to address the rising costs of fuel and energy. Finance Minister Makis Keravnos stated that the administration is monitoring economic developments closely, though no immediate decisions have been finalized. The final evaluation of these options and potential costings are scheduled to be discussed during a Cabinet meeting on September 30.

Addressing concerns regarding fuel prices, Minister Keravnos emphasized that Cyprus currently maintains the fifth lowest petrol prices in the European Union. He noted that existing interventions, such as the reduction of excise duty by 8.33 cents per liter on petrol and diesel, remain in effect until November 30 following a Cabinet decision on September 10. Regarding heating oil, which has seen price increases, the government indicated it is monitoring market trends but has not yet deemed specific intervention necessary due to current weather conditions.

The Minister rejected criticism regarding potential further subsidies, noting that European Union regulations prevent the reduction of VAT on electricity below 5 percent. Further details and potential new policy announcements are expected following the Cabinet's review at the end of the month.