FROM 1 APRIL - REDUCTION OF 8.33 CENTS IN MOTOR FUELS - SEE WHAT PRICE OF GASOLINE WILL BE AND THE PRICE OF DIESEL - Filenews 26/3 by Angelos Nikolau
The Government is proceeding with a reduction in the excise tax on motor fuels, in an effort to limit the effects of the continuous increases in international oil prices. The measure will come into force from April 1 to June 2026.
The Government announced a horizontal reduction in the final selling price of gasoline and diesel by 8.33 cents per liter (including VAT).
The decision provides for the reduction of excise duty to the minimum rates permitted by the acquis communautaire.
Specifically:
Petrol: The tax is reduced from €0.429 to €0.359 per litre.
Diesel: The tax is reduced from €0.40 to €0.33 per liter.
According to government sources, this intervention is expected to mitigate the purchase cost by 5.9% for gasoline and by 5.1% for diesel, offering a significant relief to consumers, who have seen prices gallop in the last month.
Following the implementation of the reduction of 8.33 cents, the average fuel price in Cyprus is expected to stabilize at lower levels, despite strong inflationary pressures: Unleaded 95 €1.43 / litre and diesel €1.67 / litre
Government intervention was deemed necessary after the data of the Retail Price Observatory, which showed very large increases in just one month (27/02/2026 to 26/03/2026).
Specifically, the average price of unleaded 95 skyrocketed by 20.2 cents (from €1,314 to €1,516), while diesel saw a record increase of 34,8 cents (from €1,410 to €1,758). Even higher was the charge on heating oil, the price of which increased by 27.7 cents (from €0.949 to €1.226).
It is noted that the price of Brent oil, which has been showing ups and downs in the last month, is currently at $100 per barrel.
It should be noted that international Platts prices remain at extremely high levels. Indicatively, from the end of February until today, the international price for gasoline 95 recorded an increase of 50%, while diesel and heating oil recorded increases of 83% and 76% respectively. Crude oil also remains high, registering a 57% increase.
Despite the current crisis, today's retail prices (before the new reduction) present a mixed picture compared to previous years. The price of gasoline today (€1,516) is slightly lower than in November 2023 (€1,550), however, diesel (€1,758) is now at significantly higher levels than the €1,709 of the same period.
