Fuel prices in Cyprus reach record levels amid market controversy

Fuel prices in Cyprus have experienced a significant rally throughout 2026, with diesel reaching an all-time high of €2.126 per litre in Limassol by early October. According to the Consumer Protection Service, the average price of 95-octane unleaded petrol reached €1.74 to €1.75 per litre, marking an increase of approximately 43 cents since February, despite a government excise duty reduction of 8.33 cents per litre. The Cyprus Fiscal Council noted that between August 2025 and August 2026, fuel costs were driven primarily by refining and distribution margins rather than just crude oil price fluctuations.

The sharp increase has led to public outcry and claims from the Cyprus Consumers’ Association that many petrol stations failed to fully pass on the state tax subsidy. The Consumer Protection Service maintains that current prices are justified by international market data and that the market determines prices independently. Meanwhile, reports suggest that rising costs are prompting some motorists to cross the border for refueling, and small declines in daily fuel sales have been observed.

Looking ahead, officials hope for price stabilization as global markets fluctuate. The Fiscal Council has suggested that shifting from broad tax cuts to direct subsidies for vulnerable social groups would be a more effective economic strategy to mitigate the impact of the rising cost of living.