Government delays start to allow adjustment
The Cypriot government will introduce a temporary fuel tax reduction on April 4, instead of the initially planned April 2. The House Finance Committee approved the measure, which the plenary session is expected to vote on, taking effect from midnight on Saturday.
Details of the fuel tax cut
The government will cut excise duties by 8.33 cents per litre for gasoline and 6 cents per litre for diesel. Naya Symeonidou, Head of the Tax Policy Unit at the Ministry of Finance, said the move aims to counter rising fuel prices caused by the conflict in the Middle East. Following Eurogroup recommendations, the measure will last until the end of June and will be reassessed as market conditions evolve. The total cost of the measure is estimated at €18.6 million.
Consumer protection and monitoring
The Consumer Service will monitor fuel retailers to ensure the reduction reaches motorists. Lawmakers raised concerns about potential profiteering, and the Ministry of Commerce will handle complaints.
The government also reduced VAT on electricity to 5% for all households, effective May 1, 2026, until March 31, 2027. Officials will monitor implementation to ensure consumers benefit.
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