The Cyprus Cabinet has decided to continue the tax reduction on motor fuel for another two months, extending the measure from 1 July until 31 August 2026.
The decision carries a total fiscal cost of €12 million and forms part of broader efforts to ease financial pressure on households, workers and businesses facing higher energy expenses.
Support measures continue amid energy pressures
Speaking at the Presidential Palace following the Cabinet meeting chaired by the President of the Republic, Nikos Christodoulides, Government Spokesperson Konstantinos Letymbiotis said the extension forms part of the government’s continuing support strategy.
He noted that although energy prices have generally shown signs of easing, costs remain above normal levels due largely to ongoing geopolitical developments.
Measure part of wider €200m package
Letymbiotis also recalled that the fuel tax reduction was first introduced following a Cabinet decision on 26 March and has been included since April in a broader package of eight support measures valued at €200 million.
According to the government, the package aims to provide relief to citizens while strengthening the country’s economic resilience during a period of continued pressure on energy prices.
Officials said the fuel tax reduction is intended to help lessen the financial burden created by ongoing energy market volatility.
Also read: Cypriots report modest financial improvement, but pressures persist
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