The Ministry of Finance notes that, despite the fact that Cyprus has some of the lowest prices in the European Union for both unleaded gasoline and diesel fuel, it is monitoring geopolitical developments and the instability caused by the ongoing conflict in the broader Middle East region. 

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“Although in recent days there has been a trend toward a decline in international prices and, consequently, in retail fuel prices, nevertheless, since prices have not yet stabilized due to international developments, the Ministry of Finance, as part of the government’s broader social policy to support households and businesses, proposed, and the Council of Ministers, at its meeting on June 24, 2026, decided to extend the implementation of the measure to support citizens’ income, which involves the application of reduced excise tax rates on motor fuels for the period from July 1, 2026 through August 31, 2026.”

It adds that, following a request by most political parties at yesterday’s session of the House of Representatives on June 25, 2026, the Ministry of Finance agreed to further extend the application of the reduced excise tax rates until September 17, 2026, in order to allow for a reassessment of the measure when the House of Representatives resumes its session in the fall.

Under the new regulation, the tax relief of 8.33 cents per liter, including VAT, will remain in effect until September 17, 2026, in order to stabilize prices.

Specifically:

• The excise tax on gasoline remains reduced from €0.429 per liter to €0.359 per liter
• The excise tax on diesel fuel remains reduced from €0.40 per liter to €0.33 per liter

With the extension of this measure, the total benefit to citizens is estimated to amount to €12.4 million.