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Reduced excise duty on fuel in Cyprus remains in effect until November 30
The reduced fuel excise tax in Cyprus will remain in effect until November 30, 2026. The government extended the relief, which was due to expire on September 17. It reduces the price of petrol and diesel by 8.33 cents per liter.
The decision was announced by Finance Minister Makis Keravnos after a government meeting. He emphasized that maintaining lower rates is intended to continue supporting households and businesses during a time of high volatility in international energy markets.
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Reduced excise duty on fuel in Cyprus extended
The Council of Ministers accepted the proposal of the Ministry of Finance to extend the applicable rates.
The excise tax on petrol was reduced from €0.429 to €0.359 per litre, while that on diesel was reduced from €0.40 to €0.33 per litre.
The difference in excise duty alone is 7 cents. After taking into account VAT, the benefit to the driver is 8.33 cents on every liter of fuel.
How much does a driver save when refueling?
When filling up with 40 liters of fuel, maintaining the reduced excise duty means approximately 3.33 euro savings. In the case of 50 liters, this is approximately 4.17 euros.
The government estimates total consumer savings since the introduction of the solution at €15.5 million.
This doesn't mean, however, that prices at the pump will remain unchanged. The final price of fuel also depends on crude oil and finished product prices, exchange rates, transportation costs, and the policies of individual importers and sellers.
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Prices may still change
The Finance Minister noted that fuel prices are constantly rising and falling. He believes they are currently influenced not only by production costs but also by the situation on financial markets, as well as statements and events related to geopolitical tensions.
Makis Keravnos said that three days before the government meeting, gasoline cost around €1.59 per liter. He also stated that among European Union countries, only Bulgaria had lower gasoline prices.
Representatives of gas station owners previously noted that prices at the pumps had already begun to rise slightly. The full impact of the more expensive deliveries may only be visible after companies receive further batches of fuel purchased at higher prices.
We also described the recent price increases for petrol and diesel fuel in a separate article: https://cyprnews.pl/ceny-paliw-na-cyprze-znow-w-gore-diesel-juz-po-186-euro/
No further action for now
The Minister of Finance announced that apart from extending the current relief, the government is not currently considering additional solutions.
However, some political parties are demanding further protection for drivers. DISY is calling for maintaining the lower excise tax until the end of the year and further suspending the planned green fuel tax.
AKEL wants to abolish VAT on excise duties, describing the current arrangement as double taxation. ELAM also advocates for maintaining the tax relief, citing the impact of the unstable situation in the region on households and small businesses.
The Ministry of Finance announces that the future of this solution will be re-evaluated depending on the situation on the energy market. For now, the lower rates will remain in effect until November 30, 2026.
Sources: Ministry of Finance of the Republic of Cyprus, Cyprus Mail.
