Excise rates reduced for petrol and diesel
Cyprus will reduce excise duty on motor fuels from 1 April through June 2026 following sharp price surges. Diesel experienced a record rise of 34.8 cents per litre over a single month.
The reduction of 8.33 cents per litre brings excise rates to the minimum allowed under EU law. Petrol excise duty falls from €0.429 to €0.359 per litre, while diesel drops from €0.40 to €0.33 per litre. Government sources say the cut will reduce petrol costs by 5.9% and diesel costs by 5.1%, with average prices expected to stabilise at €1.43 per litre for unleaded 95 and €1.67 per litre for diesel.
Fuel price spikes trigger government action
Retail Fuel Price Observatory figures covering 27 February to 26 March show an extraordinary increase in fuel costs. Unleaded 95 jumped 20.2 cents from €1.314 to €1.516 per litre, diesel surged 34.8 cents to €1.758, and heating oil rose 27.7 cents to €1.226.
This spike reflects extreme international market movements: since late February, Platts data shows unleaded 95 up 50%, diesel up 83%, heating oil up 76%, and crude oil up 57%. Brent crude currently trades at $100 per barrel.
Price comparison with previous years
Current retail prices tell a mixed story compared with last year. Petrol at €1.516 per litre remains slightly below its November 2023 level of €1.550, while diesel at €1.758 exceeds the €1.709 recorded during the same period.
The government expects the excise cut to provide immediate relief for consumers while stabilising the market over the spring months.
Also read: President Christodoulides announces eight-point support measures
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