Fuel prices in Cyprus reach record highs

On Friday, September 25, 2026, the average price of diesel in Cyprus reached a record high of €1.997 per liter, surpassing the previous record of €1.989 set on July 12, 2022. According to the Consumer Protection Service's Retail Fuel Price Observatory, individual prices at more than 100 stations across the country have already exceeded €2 per liter. Additionally, heating oil has hit a new peak with an average price of €1.608, while unleaded 95 gasoline is averaging €1.718.

The price surge is attributed to global energy market volatility exacerbated by conflicts in the Middle East and Ukraine, which have disrupted crude oil supplies and damaged refining infrastructure. In response to the record costs, the Cyprus Consumers Association and the Pancyprian Association of Petrol Station Owners have formally requested that the government reduce the Value Added Tax (VAT) on fuels and return the surplus tax revenue generated by these price hikes to the public.

The tax structure remains a subject of public debate, as fuel prices include both an excise duty and VAT, the latter of which is calculated on a base that includes the excise duty. While some stakeholders express concern over the indefinite nature of the upward trend, station owners suggest that further price adjustments will likely continue to be implemented gradually over the coming days.