Fuel tax cut extended until 30 November 2026
Parliament voted unanimously to keep the reduced excise duty on petrol and diesel, saving drivers 8.33 cents per litre from 18 September.
Cyprus's Parliament has unanimously approved an urgent government bill extending the reduced excise duty on transport fuels until 30 November 2026, as reported by the Greek-language media. The current reduction was due to expire on 17 September, with the new arrangement taking effect from Friday 18 September.
The relief amounts to 8.33 cents per litre on both petrol and diesel, according to the chair of the House Finance Committee, DIKO MP Christiana Erotokritou. She said the Finance Ministry intends to keep monitoring international energy prices and may extend the measure beyond 30 November if needed. Erotokritou added that Cyprus applies the lowest excise duty rate on fuel allowed under the relevant EU directive.
MPs across parties backed the extension while pressing for more. Yiannis Laouris of Direct Democracy called the move "a step in the right direction" and said his party wants the cut made permanent, arguing that Cypriot pump prices remain very high. He also proposed scrapping VAT charged on top of excise duty, keeping the reduced 5% VAT rate on electricity and exempting the emissions levy from VAT.
Odysseas Michaelides of Alma – Citizens for Cyprus said fuel prices have risen since June, with government taxation up by 2.5 cents per litre on petrol and 5 cents on diesel. He noted that heating oil now costs around €1,500 per tonne, compared with roughly €950 before the war, and urged the Finance Ministry to review the tax on it.
Other MPs raised the looming inclusion of road transport in the EU emissions trading system from January 2028. Erotokritou rejected the "double taxation" argument on fuel, explaining that under a European directive binding on all member states, the VAT base includes duties, tariffs and taxes. Inflation stood at 5.2% in August, according to DISY MP Savia Orfanidou, who said high inflation has serious consequences for households.
What it means for residents
The extension keeps the price of filling up unchanged from 18 September, but it is a temporary measure that will come up for review again next autumn. Drivers should not expect the cut to be made permanent, and heating oil remains excluded, which matters as winter approaches.
- At the pump: the 8.33 cents per litre saving on petrol and diesel continues, so a 50-litre fill costs about €4.17 less than it would without the measure.
- Heating oil: the reduction does not cover heating oil, so households that rely on it should budget for continued high prices.
- Watch the calendar: the measure runs to 30 November 2026, and any further extension will depend on international energy prices.
This text is written from the source article and is not a translation of it.
