Nicosia, 1 September 2026 – The Cypriot government wants to extend the current reduction in excise duty on petrol and diesel for another one to two months. Finance Minister Makis Keravnos announced that the existing relief would be continued beyond the previously planned expiry on 17 September.

According to the Minister of Finance, the previous level of the tax reduction is to remain unchanged. The corresponding draft law is to be approved by the cabinet and then submitted to parliament.

Provided that the necessary decisions are taken in time, the extension is to come into force on 18 September. After that, the government will reassess the situation and decide whether a further continuation is necessary.

8.33 cents relief per litre

The current measure reduces the burden including VAT by 8.33 cents per litre. The excise duty on petrol has been reduced from 42.9 to 35.9 cents per litre, and for diesel from 40 to 33 cents.

Keravnos explained that Cyprus has already reduced the tax to the minimum level permitted by EU rules. According to the minister, the previous regulation has saved consumers a total of around 15.5 million euros.

rental cars at DiscoverCarsOil prices increase the pressure

The background to the decision is rising international oil prices again. Crude oil was recently traded above 90 US dollars per barrel again, after the price had been around 80 dollars about a week earlier.

Representatives of the petrol station operators have already reported minor price increases in the past two weeks. However, the full effect of the more expensive procurement is likely to become visible with a time lag, because not all deliveries have yet arrived at the higher market prices.

government points to the development in the Middle East, which is difficult to predict. New tensions or disruptions to important transport routes could further increase energy prices in the short term. Conversely, signs of relaxation could calm the markets again.

The tax relief is therefore expressly intended as a temporary measure. After one or two months, it will be examined whether it is still necessary and compatible with the European requirements for targeted energy aid.