The forecasts for fuel prices are nightmarish. Experts estimate that the upward trend could continue until the end of the year.
“The situation will get even worse. I believe prices will keep rising through November, maybe even until the end of the year. And they’ll go up quite a bit more. Maybe as much as 10% from now. I don’t expect prices to keep rising until the middle of next year, but they will remain high until then,”
said Charalambos Ellinas, an energy expert.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
Even a de-escalation of major international crises will not immediately restore supply, according to Charalambos Ellinas.
“It will help, but not in the immediate future. Because for Russia’s refineries to return to normal production—as they were before the drone attacks—and for the Gulf to open up and the war in Iran to end, Russia’s problems won’t be solved unless Ukraine stops attacking the refineries.”
Looking back at gas station prices in Cyprus, we see the significant increases consumers have had to bear in recent months. According to data collected by the Consumers’ Association, from March 1 through today, the price of 95-octane gasoline has risen by 41 cents per liter, diesel by 59 cents, and heating oil by 66 cents per liter.
“You asked me where we’re headed, how far we’ll go. My answer is two or three lines from a song. We’re heading into the unknown, with hope as our boat.”
Marios Drousiotis – President of the Consumers’ Association
The increases caused by rising fuel costs are having a ripple effect. From electricity and food to transportation.
Airfare in Cyprus was 5% higher in August 2026 compared to the same month in 2025, according to Eurostat data, while prices in the European Union fell by an average of 0.4%.
Greece recorded the largest annual increase, at 16.3%.
Watch the report by Rafaella Stavrinou:
The unprecedented increases in fuel prices are putting an unbearable strain on consumers’ wallets, while at the same time the government is facing intense pressure to take additional measures.
Although the government has extended the fuel tax relief, the trend in fuel prices does not allow consumers to feel the difference.
“From the price increases effective March 1 alone, the government is collecting an additional 7.75 cents per liter on gasoline due to VAT, 11 cents per liter on diesel, and 13 cents per liter on heating oil.”
Marios Drousiotis
The Consumers’ Association proposes reducing the VAT on fuels from 19% to 5 without the European Commission’s approval, as well as to submit a request to the EU for a further reduction in the excise tax on fuel for all member states.
Several European countries have already taken significant measures.
In Greece, for example, a gasoline subsidy will be announced in the coming days, along with additional measures for heating oil and diesel fuel.
Germany is reducing the tax on gasoline and diesel by 17 cents per liter starting October 1, while a price cap on fuel is also being considered for the new year.
France has allocated 450 million euros to extend fuel subsidies through the end of the year and has doubled the subsidy for low-income workers.
All of this comes as the EU Energy Commissioner is calling on the energy ministers of EU member states to consider measures that will ensure sufficient reserves or reduce demand for natural gas and electricity for as long as necessary.
“European governments must step up their preparations for this winter. I urge you to consider taking or continuing to take measures.”
Dan Jørgensen – EU Commissioner for Energy
AKEL also launched a critique of the government in a written statement by MP Giorgos Koukoumas.
“In 2026, the state collected 200 million euros in increased revenue through VAT and excise taxes, but essentially nothing is being returned to society. In other words, the Cypriot people are paying twice for the high cost of living, yet the government shows no inclination to do anything to support society.”
Giorgos Koukoumas – AKEL Member of Parliament
In fact, AKEL is organizing a protest on Monday outside the Ministry of Finance—not only over the high cost of living but also regarding wages, pensions, and affordable housing.
Watch Eleni Michael’s report:
