Fuel Prices in Cyprus Could Rise Sharply
Fuel prices in Cyprus may rise again in the near future. The reason is the increase in oil prices on the international market and the upcoming expiry of the reduced excise duty. According to Christodoulos Christodoulou, Vice President of the Pancyprian Association of Petrol Station Owners, a series of small price increases has already been recorded over the past two weeks, particularly for diesel fuel.
The price of oil has risen to $90–91 per barrel, compared with around $80 just about a week ago. It is not yet possible to determine exactly how much of this increase will be passed on to petrol stations in Cyprus: companies still need to receive fuel shipments purchased at higher international prices, while oil prices continue to fluctuate significantly.
September 17 is a key date for petrol station prices
September 17, 2026, is particularly important, as this is the date when the extension of the reduced excise duty on motor fuel expires. If the measure is not extended, the price of 95- and 98-octane petrol and diesel will automatically increase by 8.33 cents per litre, including VAT. At present, the special excise duty has been reduced:
- for petrol — from €0.429 to €0.359 per litre;
- for diesel — from €0.40 to €0.33 per litre.
Including VAT, the total saving for consumers amounts to 8.33 cents per litre. The government previously extended the measure until September 17, 2026. According to the Ministry of Finance, the extension of the relief is expected to provide citizens with a total financial benefit of €15.5 million.
According to Christodoulos Christodoulou, the removal of the excise duty discount against the backdrop of already higher global oil prices could push diesel prices close to €2 per litre. So far, the government has not announced another extension. On August 25, Finance Minister Makis Keravnos said that the price situation was being continuously assessed and that decisions would be made depending on how developments unfold. He also referred to European Commission recommendations that such support measures should be targeted and limited in duration.
No fuel shortage in Cyprus for now
Despite geopolitical tensions in the region, Cyprus is currently experiencing no problems with fuel supplies. According to industry representatives, oil companies continue to fulfil petrol station orders as usual. Cyprus receives fuel, among other sources, from Greece and Israel, and no supply disruptions have been recorded so far.
The official Consumer Protection Service continues to publish weekly data on average retail prices for petrol, diesel and heating fuel in Cyprus and compare them with EU averages. The latest published report reflects prices as of August 24, 2026.
Heating fuel has also become more expensive
The rising cost of heating fuel may place additional pressure on households. According to the data cited in the publication, its price has approached €1.5 per litre, compared with around €1.1 at the end of the previous winter season. This means that filling a 1,000-litre tank today would cost approximately €1,500.
At the same time, the growing popularity of electric and hybrid vehicles is gradually beginning to affect demand for conventional fuel. However, according to industry representatives, the decline in petrol station sales is not yet significant and is expected to become more noticeable as the number of such vehicles on the roads increases.