AKEL MP Andreas Pasiourtides, due to international turmoil and European directives, emphatically reiterating the call for the permanent abolition of double taxation. At the same time, the Ministry of Finance intends to introduce a bill for a two-month extension of the excise tax reduction on motor fuels until the end of November
Concerns over heating oil
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As Mr. Pasiourtidis noted during the discussion in the relevant parliamentary committee, a representative of the Ministry of Finance confirmed that there are plans to extend the 8.33-cent-per-liter reduction until November 30, as the current decree expires on September 17.
The lawmaker, however, raised a serious concern regarding heating oil, which remains excluded from the relief measures.
“The price has risen significantly, reaching 1.58 euros per liter, and winter is coming,” he noted.
Read more: Fuel: Extension of the price reduction measure amid rising prices; what’s expected for 2028
Commenting on recent developments in the Middle East and the attacks on military bases, Mr. Pasiourtidis pointed out that these new military upheavals have already begun to drive up prices at gas stations. He described the extension of the excise tax reduction as “the least the government can do,” while stressing that this is not a permanent solution to the inflationary pressures weighing on households.
New wave of increases starting in 2028
He made special mention of the bill to harmonize with European law on the mandatory blending of biofuels, revealing that Cyprus will request a reduction of the target to 11.5% (from 14.5%) due to a lack of domestic production.
He explained that this change—which currently stands at just 7% for diesel and zero for gasoline—will result in an automatic price increase.
“This means that starting in 2028, there will be a 2.5-cent-per-liter increase for gasoline and a 7-cent increase for diesel. This increase will be a given and will not depend on external factors,” he warned, adding that without timely intervention, prices could even exceed 2 euros per liter.
Regarding the 174-million-euro fund and the government’s plans for electric vehicle incentives as a compensatory measure, the lawmaker expressed strong doubts as to whether these would actually reach those who are truly vulnerable.
“If a car costs 60,000 euros, no matter how much a vulnerable citizen is subsidized, if the subsidy doesn’t cover 95% of the cost, they can’t afford it. We don’t even have the infrastructure—let’s not fool the public,” he emphasized, while also ruling out the practical possibility of varying prices at gas station pumps using vulnerability cards.
“It’s unfair and unreasonable.”
In closing, he proposed the elimination of the 19% VAT on the excise tax as an immediate and effective relief measure, noting that approximately 50% of the final price of fuel consists of taxes. As he calculated, eliminating the 19% VAT on the tax would reduce the price at the pump by 7 to 8 cents per liter.
“Imposing VAT on excise tax is unfair and illogical, and it should have been abolished years ago. In a country without adequate public transportation, where we are completely dependent on our cars to take our children to school and get to work, the government must take a political decision to abolish double taxation.”
