Cyprus seeks EU go-ahead to cut heating oil tax further
Finance Minister Makis Keravnos has opened a derogation process with Brussels to lower the consumption tax on heating oil beyond the reduction already approved in the latest support package.
Cyprus has asked the European Commission for permission to push the tax on heating oil below the level set in the government's newest cost-of-living package, as reported by Philenews. Finance Minister Makis Keravnos said the request has been filed as a derogation and that Brussels is now examining it.
The tax was cut to 2,1 cents per litre from 7 cents under measures worth more than 70 million euro unveiled after a Cabinet meeting. Keravnos stressed that 2,1 cents is the floor EU rules currently allow, while heating oil has climbed to 1,564 euro per litre and is still rising.
The package also zeroes VAT on basic foodstuffs such as meat, fish, poultry, seafood, baby milk, diapers, fruit, vegetables, milk and bread until late 2027, and includes tiered electricity subsidies aimed at low earners plus extra help for mountain communities.
What it means for residents
If Brussels grants the derogation, households that rely on heating oil will feel the difference directly in their winter bills — but the process takes time, so any extra relief is unlikely to arrive before the coldest weeks.
- Food bills — zero VAT on staples from meat to bread runs until late 2027, so receipts at the till should already be lighter.
- Heating oil — the current 2,1 cents per litre tax is the EU ceiling; don't expect a further drop until the Commission replies.
- Mountain homes — extra support is on the way for these areas, alongside lower-rate electricity subsidies; check the ministry's announcements for how to claim.
This text is written from the source article and is not a translation of it.
