Nicosia, Cyprus. The government will extend reduced fuel excise duties until September 17 at an estimated cost of €15.5 million after agreeing to prolong the measure beyond its original August deadline. The finance ministry announced the decision on Friday following a request from most parliamentary parties during Thursday’s House session.
Extension of fuel tax relief
The measure will remain in force until parliament resumes after the summer recess and reassesses market conditions. It preserves the current reduction in fuel taxation worth 8.33 cents per litre, including VAT, with the aim of limiting pump prices for motorists during continued uncertainty in global energy markets.
Tax rates for petrol and diesel
Under the revised arrangement, excise duty on petrol will remain at €0.359 per litre instead of €0.429, while diesel will continue to be taxed at €0.33 per litre rather than €0.40.
Market conditions and government assessment
The finance ministry said Cyprus continues to record some of the lowest petrol and diesel prices in the EU, while adding that it is closely monitoring developments in the Middle East and their effect on international oil markets.
Although wholesale oil prices and retail fuel prices have eased in recent days following signs of de-escalation in the US-Israeli war with Iran, the ministry said prices have “not yet reached a point of stabilisation”.
Parliament and cabinet decisions
Cabinet had originally approved a two-month extension from July 1 until August 31. Parliament unanimously endorsed the proposal on Thursday, but ministers subsequently agreed to extend the measure by a further 17 days following discussions with political parties.
Estimated cost and reaction
The ministry estimates the longer extension will increase the total cost of the measure from around €12 million to €15.5 million. The decision was welcomed by the consumers association, which said it had not expected the government to continue the relief.
