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A long-awaited reduction in fuel taxes meant to ease pressure on households will not begin Thursday as originally planned but instead take effect at midnight on April 4, giving fuel companies time to adjust prices before motorists see the savings.
The government’s measure, presented urgently to Parliament’s Finance Committee on Thursday, is expected to be approved by the full House later the same day.
Once implemented, the plan will lower the consumption tax by 8.33 cents per liter on gasoline and 6 cents per liter on diesel, a temporary move designed to cushion the impact of rising fuel prices driven by instability and conflict in the Middle East.
A temporary fix, for now
Officials stress the relief will not be permanent.
Nagia Symeonidou, head of the Finance Ministry’s Tax Policy Unit, told lawmakers the measure follows Eurogroup guidance that support measures should remain targeted and short-term. The tax cuts are therefore scheduled to remain in force until the end of June, after which the government will reassess depending on global energy developments.
The estimated cost to state finances is €18.6 million.
The two-day delay, she explained, allows time for the law to be published in the Government Gazette and for fuel companies to update pricing systems, a step meant to ensure consumers immediately benefit once the measure comes into force.
Will drivers actually see the savings?
That question dominated parliamentary discussion.
Lawmakers pressed officials on how authorities will ensure fuel stations pass the reductions directly to consumers rather than absorbing the difference as profit.
Symeonidou said the Consumer Protection Service will monitor implementation closely, while responsibility for investigating potential profiteering lies with the Ministry of Commerce.
DIKO MP Christiana Erotokritou called for intensified inspections, warning that businesses attempting to exploit a measure that reduces state revenue would be “doubly punishable.”
AKEL MP Christos Christofides argued that fuel price increases tend to reach consumers immediately, “like a rocket,” he said, while price decreases often arrive much more slowly, as companies cite existing stock costs.
Broader cost-of-living measures
The fuel tax cuts are part of a wider government effort to ease energy expenses.
Officials confirmed that a separate measure reducing VAT on electricity bills to 5% for all households has already been approved by decree. That reduction will take effect on May 1, 2026, and remain in place until March 31, 2027.
DISY MP Savia Orphanidou also raised questions about whether additional targeted measures, such as zero VAT on specific essential goods, should be evaluated.
A balancing act for government finances
According to the Finance Ministry, the temporary nature of the fuel tax cut allows authorities to monitor whether the savings truly reach consumers before considering any extension.
The government’s approach reflects a broader challenge facing European countries: how to provide relief to households without locking in costly long-term subsidies as global energy prices remain unpredictable.
For now, drivers can expect relief, just not until the weekend.
