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Drivers in Cyprus will continue paying less for petrol and diesel after the government extended a fuel tax cut until Sept. 17, keeping a discount of 8.33 cents per liter, including VAT, at filling stations.
The extension, announced by the Finance Ministry, is expected to save households and businesses a combined €15.5 million, offering continued relief at a time when global fuel prices remain unpredictable.
For many Cypriots who rely on their cars for work, school runs, or daily errands, it means a little less pressure every time they fill up.
Why the extension?
The government said the decision was prompted by ongoing uncertainty in international oil markets, largely linked to geopolitical tensions in the wider Middle East.
Although fuel prices have shown signs of easing in recent days, officials said the situation remains too unstable to withdraw the support measure just yet.
The Finance Ministry said it has been closely monitoring global developments and wants to shield households and businesses from sudden price spikes while markets settle.
Parliament pushed for a longer extension
The Cabinet had initially approved the reduced fuel tax only until the end of August.
However, following requests from the majority of political parties during Thursday's House of Representatives session, the Finance Ministry agreed to extend the measure by another two and a half weeks, until Sept. 17.
The extra time will allow Parliament to review the measure when it resumes work after the summer recess and decide whether further action is needed.
What drivers will pay
Under the extension, the excise duty remains reduced by:
- Petrol: from 42.9 cents to 35.9 cents per litre
- Diesel: from 40 cents to 33 cents per litre
Including VAT, the tax relief amounts to 8.33 cents per liter for consumers.
What it means for the average family
For a driver filling a typical 50-liter tank, the tax cut saves around €4.15 each visit to the petrol station.
While that may not seem like a huge amount, the savings can add up over several months, particularly for commuters, families with multiple cars, and businesses that depend on transport.
The government also pointed out that, despite recent volatility, Cyprus continues to have some of the lowest petrol and diesel prices in the European Union.
Still, with oil markets capable of changing quickly, officials say they are keeping a close eye on developments before deciding whether additional support will be needed later this year.
For now, motorists can count on paying a little less at the pump for the rest of the summer and into the first half of September.
