US Secretary of State Marco Rubio has described the prospect of a conflict between Greece and Turkey as “unthinkable”, including one arising over Cyprus, in...
Refining, transport, distribution and other costs contributed more to the annual increase in petrol prices in Cyprus than crude oil itself, according to calculations by the Cyprus Fiscal Council.
The Council's analysis shows that the average price of unleaded 95 petrol rose by 23.8 cents per litre between August 2025 and August 2026, from €1.351 to €1.589.
The figures refer specifically to that 12-month period. More recent data from the Retail Fuel Price Observatory put the average nationwide price of unleaded 95 at approximately €1.74 per litre on 2 October 2026.
What caused the 23.8-cent increase?
The Fiscal Council's inflation presentation for 2025–2026, prepared by its president, Dr Andreas Charalambous, breaks down the petrol price increase into four components: international crude oil prices, exchange rates, refining and distribution costs, and taxation.
The contributions to the annual change were:
ComponentChange per litreBrent crude oil+12.5 centsEuro-US dollar exchange rate+0.2 centsRefining, distribution and other costs+14.3 centsTax changes-3.2 centsTotal increase+23.8 cents
The largest contribution came from refining, distribution and other associated costs, which added 14.3 cents per litre, compared with 12.5 cents from crude oil.
Nevertheless, the Council emphasised that the underlying shock was primarily international, noting that Brent crude prices had risen by approximately 75% over three months.
The average price of crude oil reached $117 per barrel in April 2026, fell to $85 in June and stood at $91 in August.
What is included in the 14.3 cents?
The 14.3-cent component covers refining, transport, distribution and retail operations, as well as international refining margins.
The Fiscal Council explicitly stressed that this amount is "NOT the net profit of petrol stations".
Instead, it is calculated as the difference between the pre-tax retail price and the cost of crude oil.
This distinction is important when assessing the Cyprus petrol price increase, as the figure represents several costs and margins across the fuel supply chain rather than the earnings of individual petrol stations.
Excise duty fell, but VAT increased
The Fiscal Council also examined the impact of changes in fuel taxation.
It explained that a seven-cent-per-litre reduction in excise duty would lower the final retail price by 8.33 cents, including VAT, provided the reduction was passed on to consumers in full.
Between August 2025 and August 2026, excise duty was seven cents lower per litre.
However, because petrol prices had risen, the amount of VAT collected per litre increased by approximately 3.8 cents.
As a result, the overall tax burden on petrol fell by 3.2 cents per litre compared with the previous year, partially offsetting the increase caused by crude oil and other costs.
Why petrol remains cheaper than the EU average
The Council's presentation also compared fuel prices in Cyprus with those across the European Union.
During the week of 21 September 2026, petrol cost an average of €1.68 per litre in Cyprus, compared with €1.96 across the EU.
Cyprus had the fourth-lowest petrol price among the bloc's 27 member states.
Before taxes, however, the difference was minimal: €1.04 per litre in Cyprus compared with €1.05 across the EU.
"The difference in taxes explains almost the entire difference...
A Navtex maritime notice for the resumption of seabed surveys for the electricity interconnector between Greece and Cyprus is expected to be issued within days, according to sources familiar with the project in both countries.
The sources said the notice would be issued without seeking permission from Turkey.
The announcement would allow surveys for the Greece-Cyprus electricity cable to continue, as other financial and technical matters concerning the project remain outstanding.
The European Investment Bank is expected to complete its financial and technical assessment of the project, while the Republic of Cyprus is also expected to pay a €25 million instalment to Greece's Independent Power Transmission Operator (IPTO) for expenditure already incurred.
Ionian Sea drilling results expected in 2027
Meanwhile, the results of exploratory drilling in Block 2 of the Ionian Sea are expected between May and June 2027.
The drilling, scheduled for April 2027, will be carried out by the Energean-ExxonMobil-Helleniq Energy consortium.
It will determine whether natural gas or oil is present at the Asopos 1 prospect, which was identified through seismic surveys.
However, establishing whether any discovery is commercially viable will require further drilling to determine the size of the deposit.
Speaking at the Eastern Mediterranean Gas Forum on Wednesday, Energean Group chief executive Mathios Rigas said that if estimates of a 270-billion-cubic-metre gas deposit are confirmed, Greece could become self-sufficient in natural gas and an exporter.
Confirmatory drilling, which also requires environmental approval, would take approximately one year and is therefore expected in 2028.
If the results are positive, a further three years would be needed to install the equipment required to extract and transport the hydrocarbons.
On Tuesday, the Regional Council of the Ionian Islands approved the environmental impact assessment for drilling at Asopos.
If hydrocarbons are discovered, ExxonMobil will take over leadership of the consortium from Energean.
Energy projects discussed at Eastern Mediterranean forum
The Ionian Sea drilling project was among several initiatives of Greek interest discussed at Wednesday's Eastern Mediterranean Gas Forum meeting.
Other major projects included the Greece-Cyprus electricity interconnector, the Vertical Gas Corridor, the Greece-Egypt electricity interconnector and carbon dioxide storage at Prinos.
Regarding the Greece-Cyprus cable, sources from both countries reiterated that the Navtex required for the next phase of seabed surveys was a matter of days away and would be issued without requesting Turkey's permission.
The project's financial and technical assessment by the European Investment Bank remains pending, alongside Cyprus's €25 million payment to IPTO for costs already incurred.
Vertical Gas Corridor prepares for 2027
Work is continuing on the Vertical Gas Corridor, with participating countries collecting data to identify the investments needed to strengthen their gas transmission networks.
The aim is to ensure that infrastructure can meet demand ahead of 2027, when the European Union is expected to end imports of Russian natural gas.
A new meeting of gas transmission system operators from the participating countries is scheduled for January in Sofia.
Maria Sferoutsa, chief executive of Greece's gas transmission system operator DESFA, said efforts were also being made to improve the efficiency of existing infrastructure before proceeding with new construction.
Greece-Egypt electricity link and carbon storage
The GREGY electricity interconnector between Egypt and Greece, supported by both governments, was another initiative discussed at the forum.
Attention also focused on plans to store carbon dioxide...
A Navtex maritime notice for the resumption of seabed surveys for the electricity interconnector between Greece and Cyprus is expected to be issued within days, according to sources familiar with the project in both countries.
The sources said the notice would be issued without seeking permission from Turkey.
The announcement would allow surveys for the Greece-Cyprus electricity cable to continue, as other financial and technical matters concerning the project remain outstanding.
The European Investment Bank is expected to complete its financial and technical assessment of the project, while the Republic of Cyprus is also expected to pay a €25 million instalment to Greece's Independent Power Transmission Operator (IPTO) for expenditure already incurred.
Ionian Sea drilling results expected in 2027
Meanwhile, the results of exploratory drilling in Block 2 of the Ionian Sea are expected between May and June 2027.
The drilling, scheduled for April 2027, will be carried out by the Energean-ExxonMobil-Helleniq Energy consortium.
It will determine whether natural gas or oil is present at the Asopos 1 prospect, which was identified through seismic surveys.
However, establishing whether any discovery is commercially viable will require further drilling to determine the size of the deposit.
Speaking at the Eastern Mediterranean Gas Forum on Wednesday, Energean Group chief executive Mathios Rigas said that if estimates of a 270-billion-cubic-metre gas deposit are confirmed, Greece could become self-sufficient in natural gas and an exporter.
Confirmatory drilling, which also requires environmental approval, would take approximately one year and is therefore expected in 2028.
If the results are positive, a further three years would be needed to install the equipment required to extract and transport the hydrocarbons.
On Tuesday, the Regional Council of the Ionian Islands approved the environmental impact assessment for drilling at Asopos.
If hydrocarbons are discovered, ExxonMobil will take over leadership of the consortium from Energean.
Energy projects discussed at Eastern Mediterranean forum
The Ionian Sea drilling project was among several initiatives of Greek interest discussed at Wednesday's Eastern Mediterranean Gas Forum meeting.
Other major projects included the Greece-Cyprus electricity interconnector, the Vertical Gas Corridor, the Greece-Egypt electricity interconnector and carbon dioxide storage at Prinos.
Regarding the Greece-Cyprus cable, sources from both countries reiterated that the Navtex required for the next phase of seabed surveys was a matter of days away and would be issued without requesting Turkey's permission.
The project's financial and technical assessment by the European Investment Bank remains pending, alongside Cyprus's €25 million payment to IPTO for costs already incurred.
Vertical Gas Corridor prepares for 2027
Work is continuing on the Vertical Gas Corridor, with participating countries collecting data to identify the investments needed to strengthen their gas transmission networks.
The aim is to ensure that infrastructure can meet demand ahead of 2027, when the European Union is expected to end imports of Russian natural gas.
A new meeting of gas transmission system operators from the participating countries is scheduled for January in Sofia.
Maria Sferoutsa, chief executive of Greece's gas transmission system operator DESFA, said efforts were also being made to improve the efficiency of existing infrastructure before proceeding with new construction.
Greece-Egypt electricity link and carbon storage
The GREGY electricity interconnector between Egypt and Greece, supported by both governments, was another initiative discussed at the forum.
Attention also focused on plans to store carbon dioxide...
Police were alerted shortly after 8am on Thursday following reports of a stabbing at a construction site in the Mouttagiaka area of Limassol.
According to...
A Navtex maritime notice for the resumption of seabed surveys for the electricity interconnector between Greece and Cyprus is expected to be issued within days, according to sources familiar with the project in both countries.
The sources said the notice would be issued without seeking permission from Turkey.
The announcement would allow surveys for the Greece-Cyprus electricity cable to continue, as other financial and technical matters concerning the project remain outstanding.
The European Investment Bank is expected to complete its financial and technical assessment of the project, while the Republic of Cyprus is also expected to pay a €25 million instalment to Greece's Independent Power Transmission Operator (IPTO) for expenditure already incurred.
Ionian Sea drilling results expected in 2027
Meanwhile, the results of exploratory drilling in Block 2 of the Ionian Sea are expected between May and June 2027.
The drilling, scheduled for April 2027, will be carried out by the Energean-ExxonMobil-Helleniq Energy consortium.
It will determine whether natural gas or oil is present at the Asopos 1 prospect, which was identified through seismic surveys.
However, establishing whether any discovery is commercially viable will require further drilling to determine the size of the deposit.
Speaking at the Eastern Mediterranean Gas Forum on Wednesday, Energean Group chief executive Mathios Rigas said that if estimates of a 270-billion-cubic-metre gas deposit are confirmed, Greece could become self-sufficient in natural gas and an exporter.
Confirmatory drilling, which also requires environmental approval, would take approximately one year and is therefore expected in 2028.
If the results are positive, a further three years would be needed to install the equipment required to extract and transport the hydrocarbons.
On Tuesday, the Regional Council of the Ionian Islands approved the environmental impact assessment for drilling at Asopos.
If hydrocarbons are discovered, ExxonMobil will take over leadership of the consortium from Energean.
Energy projects discussed at Eastern Mediterranean forum
The Ionian Sea drilling project was among several initiatives of Greek interest discussed at Wednesday's Eastern Mediterranean Gas Forum meeting.
Other major projects included the Greece-Cyprus electricity interconnector, the Vertical Gas Corridor, the Greece-Egypt electricity interconnector and carbon dioxide storage at Prinos.
Regarding the Greece-Cyprus cable, sources from both countries reiterated that the Navtex required for the next phase of seabed surveys was a matter of days away and would be issued without requesting Turkey's permission.
The project's financial and technical assessment by the European Investment Bank remains pending, alongside Cyprus's €25 million payment to IPTO for costs already incurred.
Vertical Gas Corridor prepares for 2027
Work is continuing on the Vertical Gas Corridor, with participating countries collecting data to identify the investments needed to strengthen their gas transmission networks.
The aim is to ensure that infrastructure can meet demand ahead of 2027, when the European Union is expected to end imports of Russian natural gas.
A new meeting of gas transmission system operators from the participating countries is scheduled for January in Sofia.
Maria Sferoutsa, chief executive of Greece's gas transmission system operator DESFA, said efforts were also being made to improve the efficiency of existing infrastructure before proceeding with new construction.
Greece-Egypt electricity link and carbon storage
The GREGY electricity interconnector between Egypt and Greece, supported by both governments, was another initiative discussed at the forum.
Attention also focused on plans to store carbon dioxide...
Refining, transport, distribution and other costs contributed more to the annual increase in petrol prices in Cyprus than crude oil itself, according to calculations by the Cyprus Fiscal Council.
The Council's analysis shows that the average price of unleaded 95 petrol rose by 23.8 cents per litre between August 2025 and August 2026, from €1.351 to €1.589.
The figures refer specifically to that 12-month period. More recent data from the Retail Fuel Price Observatory put the average nationwide price of unleaded 95 at approximately €1.74 per litre on 2 October 2026.
What caused the 23.8-cent increase?
The Fiscal Council's inflation presentation for 2025–2026, prepared by its president, Dr Andreas Charalambous, breaks down the petrol price increase into four components: international crude oil prices, exchange rates, refining and distribution costs, and taxation.
The contributions to the annual change were:
ComponentChange per litreBrent crude oil+12.5 centsEuro-US dollar exchange rate+0.2 centsRefining, distribution and other costs+14.3 centsTax changes-3.2 centsTotal increase+23.8 cents
The largest contribution came from refining, distribution and other associated costs, which added 14.3 cents per litre, compared with 12.5 cents from crude oil.
Nevertheless, the Council emphasised that the underlying shock was primarily international, noting that Brent crude prices had risen by approximately 75% over three months.
The average price of crude oil reached $117 per barrel in April 2026, fell to $85 in June and stood at $91 in August.
What is included in the 14.3 cents?
The 14.3-cent component covers refining, transport, distribution and retail operations, as well as international refining margins.
The Fiscal Council explicitly stressed that this amount is "NOT the net profit of petrol stations".
Instead, it is calculated as the difference between the pre-tax retail price and the cost of crude oil.
This distinction is important when assessing the Cyprus petrol price increase, as the figure represents several costs and margins across the fuel supply chain rather than the earnings of individual petrol stations.
Excise duty fell, but VAT increased
The Fiscal Council also examined the impact of changes in fuel taxation.
It explained that a seven-cent-per-litre reduction in excise duty would lower the final retail price by 8.33 cents, including VAT, provided the reduction was passed on to consumers in full.
Between August 2025 and August 2026, excise duty was seven cents lower per litre.
However, because petrol prices had risen, the amount of VAT collected per litre increased by approximately 3.8 cents.
As a result, the overall tax burden on petrol fell by 3.2 cents per litre compared with the previous year, partially offsetting the increase caused by crude oil and other costs.
Why petrol remains cheaper than the EU average
The Council's presentation also compared fuel prices in Cyprus with those across the European Union.
During the week of 21 September 2026, petrol cost an average of €1.68 per litre in Cyprus, compared with €1.96 across the EU.
Cyprus had the fourth-lowest petrol price among the bloc's 27 member states.
Before taxes, however, the difference was minimal: €1.04 per litre in Cyprus compared with €1.05 across the EU.
"The difference in taxes explains almost the entire difference...
