Cyprus government submits urgent bill to reduce heating fuel excise taxes

The Cypriot government has urgently submitted an amendment to the Excise Tax Law to the House of Representatives to protect households during the upcoming winter. This initiative aims to address geopolitical instability in the Middle East and energy price volatility that threatens to increase heating costs. The legislation proposes reducing excise taxes on heating fuels—specifically diesel, kerosene, liquefied petroleum gas, and fuel oil—to the minimum levels permitted by European Union regulations.

According to the Ministry of Finance, this reduction will be effective from November 1, 2026, to April 30, 2027. The excise tax on heating oil will be reduced from 7.4 cents to 2.1 cents per liter. This measure is part of a broader support package totaling 70 million euros, which includes electricity subsidies for 23,300 vulnerable households and 82,500 commercial consumers throughout 2027. Combined with existing measures, total state support reaches approximately 160 million euros.

The Cabinet authorized the Minister of Finance to submit the bill on September 30, 2026, requesting urgent parliamentary processing. The government emphasizes that these interventions seek not only to provide immediate relief from inflation but also to foster long-term economic resilience for households and businesses.