Fuel tax reduction under scrutiny
The fuel tax reduction scheme in Cyprus has come under criticism after the Consumers Association claimed that the full benefit was not passed on to consumers. According to the Association, part of the tax reduction appears to have been absorbed by retail fuel stations instead of reaching motorists.
Monitoring reveals lower-than-expected reductions
The Association said it monitored fuel prices across Cyprus and found that the expected reduction of 8.33 cents per litre was not consistently applied. In many cases, price cuts were smaller than anticipated.
The tax reduction, approved by the Council of Ministers, came into effect from 4 April 2026 and will remain in place until the end of June. It was introduced to ease pressure on consumers following sharp increases in fuel prices.
Findings highlight inconsistencies
Based on data collected from the Ministry of Energy’s fuel price application, the Association reported that:
- 19 stations had not reduced prices by 08:00
- 97 stations reduced prices by less than 8.33 cents per litre
- 67 stations reduced prices by more than 8.33 cents per litre
- Several stations from specific companies delayed implementing reductions
- Some stations cut prices by only 2 to 6.5 cents per litre
The average nationwide reduction was 7.6 cents per litre for unleaded 95 petrol and 7.4 cents per litre for diesel, both below the expected level.
Consumer protection criticism
The fuel tax reduction issue has also triggered criticism of the Consumer Protection Service. The Association expressed concern over statements suggesting that the transition of the tax reduction proceeded smoothly, attributing lower consumer benefit to rising fuel prices.
It argued that the data does not support this explanation, noting that only two stations recorded price increases during the monitoring period, which could not have influenced the overall outcome.
Call for closer market oversight
The Association called on authorities to monitor the market more closely and avoid public statements that do not reflect actual data. It stressed that detailed records, including station names, locations, and pricing changes, are available to support its findings.
The organisation maintains that consumers did not receive the full value of the tax reduction, raising questions over market practices and oversight during the implementation period.
Also read: €7.7m farmer compensation approved for weather damage
For more videos and updates, check out our YouTube channel
