Newsroom
Cyprus drivers are set to keep saving 8.33 cents on every litre of fuel until the end of November, after the Finance Ministry confirmed plans to extend the current reduction in fuel tax.
The measure had been due to expire on Sept. 17, raising fears of an immediate increase at petrol stations just as households return from the summer holidays and face the usual pile-up of school, electricity and other bills.
A Finance Ministry representative told Parliament’s Energy Committee on Tuesday that the extension was already part of the government’s plans and had been approved by the finance minister.
“It is in our plans. It has been approved by the minister,” the representative said in response to a question from AKEL MP Andreas Pasiourtides.
The necessary bill is expected to go before the Council of Ministers and then Parliament ahead of the deadline. If approved on time, the extension will take effect on Sept. 18, ensuring there is no gap between the two periods of tax relief.
The Finance Ministry is preparing to keep the reduction in place until the end of November.
What does it mean for your pocket?
An 8.33-cent reduction may not sound dramatic, but it adds up for motorists who fill their tanks regularly.
On the tax reduction alone, a 40-litre fill-up costs about €3.33 less, while a 50-litre tank saves roughly €4.17. For a family using two cars or anyone who drives long distances to work, the monthly saving can be considerably higher.
The extension will also offer some breathing room to businesses that rely heavily on fuel, including delivery companies, farmers, tradespeople and taxi drivers. Their transport costs often find their way into the prices paid by consumers, from supermarket goods to home services.
It does not, however, guarantee that pump prices will remain unchanged. International oil prices, wholesale fuel costs and transport expenses can still push prices up or down. The tax reduction simply removes one increase that motorists would otherwise have faced after Sept. 17.
Cyprus has reached the EU limit
The ministry representative said EU rules place a limit on how far member states can reduce fuel excise duties. Cyprus has already lowered the tax to the minimum level permitted, meaning the government cannot cut it further through the same measure.
He also noted that taxation accounts for more than half the cost of fuel, illustrating how much of the price displayed at the pump goes to the state rather than to the fuel itself.
The extension must still clear the Council of Ministers and Parliament, but the government’s timetable is designed to complete that process before the existing relief expires.
For drivers, the bottom line is simple: the feared tax increase on Sept. 18 now appears likely to be postponed, at least until December.
