Fuel prices in Cyprus expected to rise from 2028 under EU biofuel rules
Diesel prices are projected to rise by about 7 cents per litre and petrol by 2.5 cents as Cyprus adopts EU transport fuel emissions rules.
Nicosia, Cyprus. Fuel prices in Cyprus are expected to increase from 2028 as the country harmonises with EU rules requiring greater use of biofuels in transport, MPs heard on Tuesday.
Officials told parliament that diesel could rise by around 7 cents per litre and petrol by 2.5 cents per litre under the planned measures.
Legislation timeline
Upcoming legislation is expected to be submitted to the EU within the next two months. The European Commission would then require a further four months to examine the proposal and provide feedback.
The measures, including the projected fuel price increases, are due to take effect in 2028.
EU renewable energy targets
The revised Renewable Energy Directive sets binding targets for renewable energy use in transport, including maritime and aviation sectors.
By 2030, EU member states must either achieve a 29 per cent share of renewable energy in transport or reduce the emissions intensity of transport fuels by 14.5 per cent.
Cyprus has chosen the emissions-intensity reduction target because it does not produce sufficient biofuel.
Support for vulnerable groups
Energy ministry officials said member states may begin introducing compensatory measures for vulnerable groups in 2027, one year before the new requirements take effect.
The offsets are estimated at €174 million, including €131 million from EU funds, with the remainder to be provided by the Cyprus state.
Biofuel production concerns
A representative of the Scientific and Technical Chamber, Etek, said Cyprus had “gone astray” regarding biofuel production.
He added that private businesses had received no support from either the state or banks.
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