Cyprus fuel prices may rise amid high oil costs and tax expiration

Fuel prices in Cyprus face potential increases due to rising international oil prices and the upcoming expiration of tax relief. Christodoulos Christodoulou, Vice President of the Cyprus Petrol Association, noted that global oil prices have risen from approximately $80 to between $90 and $91 per barrel in recent weeks.

A critical date is September 17, when the extension of reduced special consumption tax on fuels is set to expire. If the government does not renew this measure, prices for 95 and 98 octane gasoline and diesel could automatically increase by 8.33 cents per liter, including VAT. Mr. Christodoulou warned that diesel prices could approach €2 per liter as a result.

While the government is currently evaluating whether to extend the tax relief, the association reports that fuel supplies remain adequate despite regional geopolitical tensions.