Finance Minister Makis Keravnos is expected to ask the Cabinet to extend the fuel tax cut on petrol and diesel, potentially until March 2027, offering motorists continued relief as high energy costs put pressure on household budgets.
The current reduction is due to expire on November 30 and amounts to 8.33 cents per litre on both fuels.
If extended at the same rate, the measure would save drivers around €4.17 on a 50-litre fill-up compared with the price they would pay without the tax reduction. However, pump prices could still fluctuate depending on changes in fuel costs.
Speaking after Wednesday’s Cabinet meeting, Keravnos said the international energy crisis was increasing costs for both households and businesses. He also warned that inflation could rise further under current conditions.
According to Cyprus’ Statistical Service, petroleum products were 25.8% more expensive in September than a year earlier, while overall consumer prices increased by 3.7%.
Heating oil tax cut already in effect
A separate tax reduction on heating oil came into force on October 23 and will remain in place until April 30, 2027.
The Consumer Protection Service calculated the reduction at 6.39 cents per litre, including VAT. If fully passed on to consumers, this would mean savings of almost €32 on a 500-litre delivery.
The service inspected 290 petrol stations on the day the measure took effect. At 268 stations, retail prices fell by at least the full amount of the tax reduction. At the remaining 22, prices fell by less, remained unchanged or increased.
Keravnos said the government had also contacted the European Commission to ask about a further reduction in heating oil duty and was awaiting a response.
For motorists, the next decision rests with the Cabinet, which must consider whether to extend the petrol and diesel tax cut beyond the end of November.
Also read: Heating oil prices surge 62% in a year to €1.69 per litre
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