Cyprus extends reduced fuel excise duties by two months until August 31

Nicosia, Cyprus. Drivers in Cyprus will continue to benefit from reduced fuel excise duties after the House unanimously approved a two-month extension of the measure on Thursday. The reduced rates, which were due to expire at the end of June, will now remain in force until August 31.

House approval

The House passed the amendment with 38 votes in favour under an emergency procedure. The proposal had earlier been examined by the House finance committee in an extraordinary session before being referred to the plenary for a final vote.

Rates and cost

The legislation preserves the existing reductions of 8.33 cents per litre on petrol and six cents per litre on diesel. The government estimates the extension will cost approximately €12 million.

Government position

The decision followed cabinet approval earlier this week. Government spokesman Konstantinos Letymbiotis said the extension was justified because energy prices, although lower than previous peaks, remain above normal levels due to international developments.

He said the government acted after considering that prices are still at higher levels than normal because of geopolitical developments.

Broader measures

The reduced fuel duty was first introduced in March as part of a broader package of cost-of-living measures. Other measures included a temporary zero rate of VAT on meat, poultry and fish and the postponement of planned environmental levies on fuel.

Political sensitivity

Fuel prices remain a politically sensitive issue in Cyprus, where transport costs affect households, businesses and supply chains across the economy.