Fuel prices in Cyprus reach record highs amid supply constraints

Fuel prices in Cyprus have surged to record levels, with diesel exceeding €2.02 per litre, heating oil reaching €1.66, and unleaded 95 petrol at €1.74 as of early October 2026. The Petrol Station Owners' Association reports that market trends remain upward, with potential further increases of 2-3 cents per litre expected throughout the week. Experts, including energy consultant Charalambos Ellinas, attribute the volatility not to crude oil shortages, but to a supply deficit of refined products like diesel in the Mediterranean, worsened by international conflict-related damage to refineries.

Government efforts to mitigate costs, including a 6.3-cent excise duty reduction effective November 1, have been described by the Cyprus Consumers' Association as insufficient, providing only minimal relief compared to the sharp price hikes since March. Heating oil costs, which have risen by approximately 75% compared to the previous year, are particularly burdening households, which depend on petroleum-based energy for 62.9% of their heating needs. In addition to fuel pressures, the country faces potential electricity price hikes due to low energy efficiency and the high reliance on diesel for power generation. Regulatory authorities are currently evaluating mechanisms to maintain electricity supply, which may involve further costs for consumers.