Retail fuel prices in Cyprus have been rising since 13 July 2026. According to the Consumer Protection Service, the next fuel shipment may reach petrol stations at an even higher price. On the morning of 7 September, the average nationwide price of 95-octane petrol stood at €1.625 per litre. At individual petrol stations, however, prices ranged from €1.545 to €1.718 — a difference of up to 17 cents per litre.
The average price of diesel was €1.884 per litre, while heating fuel stood at €1.50. Diesel was sold at between €1.795 and €1.989 at different petrol stations, while heating fuel ranged from €1.389 to €1.655. The Consumer Protection Service notes that the trend remains negative. According to the department, since 13 July petrol has risen by 16 cents per litre and diesel by 31.8 cents. Heating fuel has increased by 13.7 cents over the past month and a half.
Paphos is the most expensive, Nicosia the cheapest
The difference in fuel prices is noticeable not only between individual petrol stations, but also between districts. According to a study by the Cyprus Consumers Association, Paphos has for a long period remained the district with the highest average fuel prices, while Nicosia has recorded the lowest. At the same time, Nicosia has shown the widest price gap between individual petrol stations.
The association believes these differences require a more detailed analysis of how retail fuel prices are formed. As of 31 August, Cyprus ranked third among EU countries for the lowest price of 95-octane petrol — it was cheaper only in Malta and Bulgaria. Diesel on the island was the eighth cheapest in the EU.
The authorities are currently trying to soften the impact on motorists. The reduction in excise duty on motor fuel currently in force cuts the tax burden by around 8.33 cents per litre, including VAT. The government plans to extend this measure beyond 17 September, although approval from both the Cabinet and Parliament will be required.
Fuel price increases have cost residents €23 million in six months
The Cyprus Consumers Association calculated that between 1 March and 8 September 2026, the price of 95-octane petrol increased by 31.6 cents per litre, diesel by 47.7 cents, and heating fuel by 56.2 cents. As a result, consumers’ additional spending on these three types of fuel over six months exceeded €23 million. Around €4 million of this amount was VAT charged on the higher prices.
At the same time, overall inflation also accelerated. In August 2026, consumer prices in Cyprus rose by 3.5% year on year, compared with 2.9% in July. The Cyprus Statistical Service officially recorded an acceleration in inflation in August.
Oil above $100: why this matters for Cyprus
Additional pressure on prices is coming from developments in the global oil market. On 9 September, Brent rose above $100 per barrel for the first time since July and closed at around $101.21. The rise was driven by new attacks on vessels and escalating tensions in the Middle East, which are creating risks for oil supplies through strategic maritime routes. This is particularly important for Cyprus because of its high dependence on imported fuel. Changes in global prices first affect the cost of petrol, diesel and transport, and then gradually feed through into the prices of other goods and services.
The effect is usually not immediate. Businesses need time to absorb higher transport, logistics, production and electricity costs. Therefore, persistently high oil prices in the coming months could increase pressure on retail prices and services. If Brent remains around $95–100 for several weeks, the risk of further increases in business costs will become greater. Slower inflation does not necessarily mean prices return to previous levels; more often, it simply means that they begin to rise more slowly.
Another factor is the upcoming changes in 2028. As part of harmonisation with EU rules, increasing the share of biofuels in the transport sector could, according to government estimates, add around 7 cents per litre to the price of diesel and 2.5 cents to the price of petrol.
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