The government will extend the 8.33-cent reduction in the excise tax on motor fuels, according to a statement made by the Ministry of Finance spokesperson before Parliament, in response to a question from AKEL MP Andreas Pasiourtides.
“It is part of our plans; the bill has been approved by the Minister and is expected to go before the Cabinet for approval and be submitted to Parliament before September 17, when the subsidy expires, so that we will be ready for 18th of the month for it to take effect.” Spokesperson for the Ministry of Finance
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The extension will remain in effect until November 30 and will cost the government an additional 16 million euros.
Despite complaints from consumers that the measure does not apply to heating oil, the government does not intend to extend it, even for these months, during which citizens will need to fill their home heating oil tanks.
Price increases are coming
A new factor will drive up fuel prices starting in 2028, based on the proposed bill titled “The Law on Specifications, Sustainability Criteria, and Emissions Reduction for Fuels,” which is harmonizing legislation with the European Union.
“The implementation of the bill will lead to an increase in the cost of motor fuels for conventional vehicles as well as higher costs for air travel. Specifically, it was noted that the surcharge is expected to amount to approximately 7 cents per liter for diesel and 2.5 cents per liter for gasoline.” Nikos Georgiou, DISY Member of Parliament
Starting in 2027, the government is expected to implement compensatory measures, which will target vulnerable groups.
The total amount of support is 131 million euros from European funds and 43 million euros from national funds.
“Technocrats from the relevant ministries have stated that any compensatory measures are included in the National Energy and Climate Plan, which is currently under review. This is a cliché we’ve heard often in recent years on the floor of Parliament, without any tangible results.”
AKEL, is reiterating its demand to abolish double taxation on fuel and calls on the government to implement it, since, as Andreas Pasiourtides states, it will reduce the price by 7 to 8 cents per liter.
“When today at least 50% of the price of fuel per liter consists of taxes, and when VAT is imposed on the excise tax on fuel —double taxation—this in itself is a very problematic issue.” Andreas Pasiourtides, AKEL Member of Parliament
The question of how resources will be allocated to assist vulnerable groups remains unanswered, given that the price increase will be reflected at all gas stations.
Watch the report by Kleio Vourkou
