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Heating fuel taxes fall by 6.39 cents a liter from today, Oct. 23, giving households some relief before winter, although MPs warned that the reduction would only partly ease the pressure of rising energy costs.
Parliament approved the measure Thursday, bringing its introduction forward from Nov. 1 following a unanimous decision by the House Finance Committee. The reduced rates will remain in place until April 30, 2027.
For households filling their heating tanks, the tax saving, including VAT, amounts to:
- €31.95 on 500 liters
- €63.90 on 1,000 liters
Those savings assume the reduction is passed on in full. The final delivery bill will also depend on the supplier’s price and movements in fuel costs.
The measure is expected to cost the state about €5.2 million. The Finance Committee said uncertainty in international markets, coupled with higher winter demand, was putting additional pressure on household heating bills.
A welcome cut, but a wider argument
The debate exposed a broader political divide over how much support the government should provide and how it should use additional tax revenue collected as prices rise.
AKEL MP Andreas Pasiourtidis welcomed the reduction as necessary household relief while calling for further discussion on exemptions and the issue of charging VAT on top of excise duty.
DISY MP Savia Orphanidou also described the cut as a step in the right direction but said temporary measures did not fully address the cost-of-living pressures facing households. She called for longer-term changes and a redistribution of resources toward those most affected.
DIKO MP Chrysis Pantelidis defended the government’s wider support measures, arguing that Cyprus was operating through a prolonged period of crises rather than normal economic conditions. ELAM’s Marios Pelekanos urged caution amid uncertainty, while supporting additional help for vulnerable groups when public finances allow.
Heating bills are only part of the squeeze
The discussion also moved beyond heating oil to the everyday cost of getting around Cyprus.
AKEL leader Stefanos Stefanou argued that comparisons with fuel prices elsewhere in Europe overlook how dependent Cypriot families are on cars, with parents and grandparents driving children to school, nursery, and activities.
For the average household, that is the wider issue: a cheaper heating delivery helps, but it arrives alongside transport, electricity, and grocery bills.
The reduction offers a measurable saving this winter. Whether further relief follows remains the political question.
