Fuel prices in Cyprus continue to rise despite government subsidies

Fuel prices in Cyprus have seen a continuous rally, with current costs significantly exceeding levels recorded before the implementation of an 8.33 cents-per-liter excise duty reduction. Data from the Consumer Protection Service indicates that the average price of 95-octane unleaded gasoline reached 1.74 euros per liter by Tuesday, representing a 43-cent increase since February. Diesel prices have risen even more sharply, climbing 60 cents in eight months to over 2.02 euros per liter.

The sharp price hikes have sparked widespread public discontent, with the Cyprus Consumers’ Association reporting that many petrol stations failed to pass the full tax cut to consumers. While government officials defend the current prices by citing European Union averages, critics argue this ignores the local economic reality where vehicles are essential for daily survival.

Consumer behavior is beginning to shift as a result of the rising costs, with reports of declining fuel volumes sold and increased traffic at border crossings, as drivers increasingly turn to the occupied areas for more affordable refueling. Industry representatives note that while most customers continue to maintain regular spending, there is a visible trend of drivers struggling to manage these sustained inflationary pressures.