FUEL - NEW PRICES TOMORROW - CONTINUOUS INCREASES WILL ABSORB FUEL REDUCTIONS - Filenews 3/4 by Eleftheria Paizanou
The reductions of 8.33 cents per liter in motor fuels will hardly be felt in the pockets of consumers, as increases in fuel prices will absorb them.
Since the day the US-Israel war clashes with Iran broke out, the price of gasoline has risen by 27.4 cents and diesel by 47.7 cents per liter, so the reduction that will occur from Saturday will disappear and will only reduce the burden somewhat.
Yesterday, the Plenary Session of the Parliament unanimously approved the reduction of the consumption tax on fuel, which is included in the measures of the Council of Ministers to deal with the effects of the crisis in the Middle East. The price reduction will be implemented from Saturday, April 4 and will be valid until the end of June, with the government side assuring that with the end of the measure it will probably be renewed.
The reduction of the special tax will be by 8.33 cents per liter, including VAT – gasoline from €0.429/liter to €0.359/liter and diesel from €0.40/liter to €0.33/liter. That is, with yesterday's fuel prices, the differentiation will be as follows:
– The average price of unleaded 95 octane gasoline yesterday was €1,588 per liter, while with the reduction of the consumption tax it will be €1,579 per liter.
– Yesterday the average selling price of diesel €1,887 per liter and from Saturday it will be reduced to €1,803 per liter.
The budgetary cost of the implementation of the measure is estimated at €18.6 million.
Shouts from MPs
Yesterday, MPs bemoaned the fact that the Government announced the measures on March 26 and the bill was finally sent to Parliament a week later, which, according to MPs, gave the opportunity to some to unjustifiably increase fuel prices.
The president of the Finance Committee and DIKO MP Christiana Erotokritou stated that this is a significant reduction in the consumption tax on fuel. According to Ms. Erotokritou, many are taking advantage of tax reductions for their own benefit, calling on the Consumer Service of the Ministry of Energy to intervene.
DISY MP Onoufrios Koulla called on the consumer protection service to prevent profiteering. As he said, seriousness and responsibility are needed from everyone despite the fact that the elections are approaching. He noted that measures are needed to address the effects, stressing the need for targeted additional measures on vulnerable population groups and tourism businesses.
AKEL MP Andreas Kafkalias spoke of the Government's mismanagement of the issue, because, as he said, it announced a reduction in the consumption tax last week, however he submitted the bill only on Thursday, giving time for the reduction to be absorbed by professionals.
ELAM MP Sotiris Ioannou called on the competent authorities to prevent profiteering. He noted that 4- to 50% of the final price of fuel are taxes, pointing out that the state loses many millions in taxes due to the fact that many Greek Cypriots go to the occupied territories and are supplied with fuel.
EDEK MP Marinos Sizopoulos stressed the need for substantial supervision and controls. He called on the Government to also consider reducing VAT on fuel, especially in light of unfair competition from the occupied territories, noting that fuel there is managed by the occupying army.
More increases are expected
However, the rally in fuel prices will continue, given the further increases recorded in the price of oil. Yesterday, after the announcement of American President Donald Trump, the price exceeded $105 per barrel. In the first months of 2026, in Cyprus, according to data from the European Commission, the average price of 95-octane gasoline was €1,343 and diesel was €1,442 per liter. According to data from the Consumer Protection Service of the Ministry of Energy, compared to the member states, Cyprus ranks 3rd cheapest for gasoline and diesel.
In 2026, the average price of unleaded 95-octane gasoline in the Netherlands was €2,089 per liter, in Denmark €1,975 per liter, in Germany €1,876, in Finland €1,863 and in Greece €1,780 per liter. Diesel prices in the Netherlands were €1,952 per litre, in Finland €1,924, in Denmark €1,879 and in Germany €1,823.
