€15.5 Million Petrol Tax Extension Approved Until Mid-September
Excise Duty on Fuels Remains Reduced Until September 17, With Total Cost at €15.5 Mln
Following parliamentary pressure, the Ministry of Finance has extended Cyprus' 8.33 cents-per-litre fuel tax relief until September 17 to shield households from ongoing Middle East geopolitical uncertainty.
Shielding Consumers from Middle East Volatility
The reduction in excise duty rates on motor fuels has been extended until 17 September, with the total cost of the measure estimated at €15.5 million, according to a press release issued by the Ministry of Finance. With this decision, the tax relief of 8.33 cents per litre, including VAT, will remain in force until that date.
The Ministry of Finance noted that, although Cyprus continues to have some of the lowest prices in the European Union for both unleaded petrol and diesel, it is closely monitoring geopolitical developments and the uncertainty caused by the ongoing conflict in the wider Middle East region.
From Initial Cabinet Proposal to Parliamentary Extension
"Although international oil prices, and consequently retail fuel prices, have shown signs of easing in recent days, prices have not yet stabilised, in light of ongoing international developments.
Therefore, as part of the government's broader social policy to support households and businesses, the Ministry of Finance proposed, and the Council of Ministers decided at its meeting on 24 June 2026, to extend the income support measure involving reduced excise duty rates on motor fuels for the period from 1 July to 31 August 2026," the press release read.
However, it is noted that, following a request by the majority of political parties during Thursday's plenary meeting of the House of Representatives, the Ministry of Finance agreed to the further extension of the reduced excise duty rates until 17 September, allowing time for the measure to be reassessed when Parliament resumes its work in the autumn.
Breakdown of the Tax Relief
According to the Ministry, the new arrangement maintains the tax relief of 8.33 cents per litre, including VAT, until 17 September 2026, with the aim of allowing fuel prices to stabilise.
The standard versus reduced duty rates per litre are structured as follows:
| Fuel Type | Standard Excise Duty | Reduced Excise Duty | Total Savings (with VAT) |
| Unleaded Petrol | €0.429 / litre | €0.359 / litre | 8.33 cents / litre |
| Diesel | €0.400 / litre | €0.330 / litre | 8.33 cents / litre |
The extension of the measure is expected to provide a total benefit of €15.5 million to consumers, the Ministry says.
