Newsroom
A fuel subsidy introduced by the government to ease the burden of rising prices was not fully reflected in what consumers ultimately paid at the pump, according to findings from the Cyprus Consumers Association.
The subsidy, amounting to 8.33 cents per liter, came into effect on April 4, 2026, and is scheduled to run through the end of June. It was part of a package of measures approved by the Council of Ministers to support households facing steep fuel cost increases. However, the Association argues that not all of this benefit reached drivers, claiming that a portion was retained by fuel retailers without justification.
To assess how prices changed, the Association tracked fuel prices across stations nationwide from late evening on April 3 through the morning of April 4, recording updates every 30 minutes. Based on the policy, prices should have dropped by the full subsidy amount immediately after midnight.
Their analysis, which focused on diesel prices using official government data, showed mixed compliance. By 08:00, 19 stations had not reduced prices at all. Another 97 stations applied smaller cuts than expected, while 67 stations reduced prices by slightly more than the subsidy amount. The Association also stated that many outlets belonging to one company had yet to adjust prices by 09:00.
In addition, 19 stations from another company reduced prices by only 2 to 6.5 cents per liter, well below the intended level. Overall, the average nationwide decrease was calculated at 7.6 cents per liter for unleaded 95 petrol and 7.4 cents for diesel, both short of the full subsidy.
The Association concludes that consumers did not receive the full intended benefit, suggesting that part of the subsidy was effectively absorbed within the supply chain.
It also criticized the Consumer Protection Service for stating that the transition of the tax reduction into retail prices had gone smoothly. The Association expressed concern over this assessment, arguing that it does not align with the data collected and calling for closer market monitoring and more evidence-based public statements.
According to the Association, only two stations raised prices during the observation period, meaning these instances did not significantly affect the overall findings. It added that it has compiled detailed records, including station locations, pricing changes, and timing, to support its conclusions.
