Diesel price hits record €1.997 a litre across Cyprus
Cyprus diesel hit an all-time high on Friday, with the average pump price reaching €1.997 a litre, as fuel industry groups renewed calls for a VAT cut.
Diesel prices in Cyprus reached a historic high on Friday, with the average pump price climbing to €1.997 a litre, as reported by Cyprus Mail. The development has prompted fuel industry groups to renew their calls for a reduction in VAT on fuel.
Figures from the consumer protection service showed diesel selling at between €1.879 and €2.098 across the island, pushing the average above the previous record of €1.989 set in July 2022. Heating oil has also reached a record, selling between €1.489 and €1.735, with an average of €1.608, above the previous high of €1.515 recorded in July 2022. Unleaded 95 petrol stood at an average of €1.718, still below its 2022 peak of €1.828.
Consumers Association president Marios Drousiotis said more than 100 petrol stations nationwide were already charging above €2 a litre, and predicted the average price would cross that threshold by Saturday. He noted that price increases are applied gradually across the network, meaning the full rise typically takes two to three days to filter through.
Petrol Station Owners Association president Savvas Prokopiou said stations yet to raise prices were likely to do so on Monday rather than over the weekend. Both he and Drousiotis urged the government to reduce VAT on fuel, with Drousiotis arguing that the state is now collecting an additional 7.5 cents a litre in VAT on petrol, 11 cents on diesel and 12.34 cents on heating oil as a direct result of the price rises.
Drousiotis said the government could cut VAT on fuel from 19 per cent to 5 per cent, as it has already done for electricity, without requiring European Commission approval. He added that Cyprus could also follow Spain and Sweden in seeking EU approval to lower fuel consumption tax further. Prokopiou described the rise in fuel prices as a pan-European issue and suggested Cyprus could take the lead in pressing for an EU-wide VAT reduction, noting that the absence of viable public transport alternatives on the island means fuel demand is not falling in line with price rises.
Asked whether the fuel price rises had yet fed through into the wider cost of goods, Drousiotis said no broad increase had been observed so far, though he expected the effects of September’s rises to appear in other products within two months. The comments come as Finance Minister Makis Keravnos prepares to bring proposals to cabinet at the end of the month aimed at addressing the rising cost of fuel, though he has said no final decisions have yet been taken.
What it means for residents
Record diesel and heating oil prices will squeeze household budgets as winter approaches, with transport and delivery costs likely to rise. While the government is preparing measures, no decisions have been made yet.
- Fuel costs: Filling up a diesel car now costs more than ever, and heating oil is at a record high, so expect higher bills for transport and home heating.
- Potential relief: A VAT cut from 19% to 5% is being discussed, which could lower pump prices if approved. Until then, no immediate savings are guaranteed.
- What to do: If you rely on heating oil, consider buying sooner rather than later, as prices may continue to climb. Keep an eye on government announcements expected by the end of the month.
This text is written from the source article and is not a translation of it.
