Cyprus government seeks further reduction in heating oil taxes

On Monday, October 12, 2026, Cyprus Finance Minister Makis Keravnos announced before the House Finance Committee that the government is actively lobbying Brussels for further reductions in excise duty on heating oil. The government has already successfully lowered the tax from 7 cents per liter to 2.1 cents per liter, but officials are now pushing for even lower rates to ease the financial burden on citizens during the 2027 fiscal period.

In addition to fuel excise adjustments, the government intends to launch formal proceedings with the European Commission to eliminate double taxation on fuel. Minister Keravnos specifically argued against the practice of charging VAT on top of existing excise duties, labeling it illogical. He stated that the government plans to challenge current EU directives on this matter, emphasizing that Cyprus does not necessarily have to implement every policy emanating from Brussels if it contradicts national economic logic.

Regarding the Cyprus-Greece electricity interconnector, the Minister confirmed that his office is currently reviewing the project's viability. While acknowledging the geopolitical importance of the energy link, he noted that the government’s priority is to ensure the project does not impose undue financial costs on taxpayers. The project remains under assessment by the Ministry of Finance.