The rally in fuel prices in Cyprus is unstoppable. In fact, yesterday prices far exceeded the levels they were at during the period when the reduction of the excise tax on motor fuels, amounting to 8.33 cents per liter, was not applied.
From the price fluctuation data maintained by the Consumer Protection Service, it is clear that, in some cases, fuel prices not only absorbed the subsidy from the state, but also exceeded the amount of the reduction.
According to data from the Consumer Service, from February until yesterday, the price of 95 octane gasoline increased by 43 cents per liter (the price includes the reduction of consumption tax on fuel). That is, last February, during the period when the government measure was not being implemented, the price of unleaded gasoline was €1.31 per liter, while yesterday, with the subsidy, the average price nationwide was €1.74 per liter.
It is worth noting that from February to August the prices of unleaded gasoline increased by 28 cents per liter, in September the increase reached 36 cents per liter, while in the first days of October the increase was greater (including the reduction of the consumption tax).
In relation to diesel, in February the price was €1.40 per liter and yesterday it exceeded €2.02 per liter. Essentially, within eight months, the price of diesel increased by 60 cents per liter. From February to August the price increased by 39 cents per liter, while until September the increase was in the order of 54 cents per liter.
Increases in heating oil prices are also burning. Last February, without the subsidy, the price was €0.94 per liter and yesterday it rose to €1.66 per liter. This is an increase of 72 cents per liter. In August the price increased by 49 cents per liter and in September the increase reached 61 cents per liter.
In the state, 40% of prices
However, of the final price of fuel, 40% ends up in the state due to taxes and other fees. Specifically, from €1.74 per liter of the price of unleaded gasoline, the price of the product is €1.09 per liter. This is because €0.27 concerns VAT, €0.36 the excise tax and €0.01 ends up in KODAP.
As for the price of diesel, which is €2.02 per liter, the price of the product is €1.36 per liter. The VAT charged on the price is €0.32, the excise tax is €0.33, while KODAP ends up with €0.01.
A spokesman for the Ministry of Finance claimed yesterday at the session of the parliamentary Energy Committee that, from the reduction of the consumption tax on fuel, the state lost revenue of €16,5 million until August. For his part, the Assistant Commissioner of Taxation, Christos Karoulas, stated that the Department's VAT revenues did not increase, as in 2024 and 2025 it was €32 million, while this year so far it is €24 million.
The increases are justified
And all this, at a time when the findings of the Consumer Protection Service of the Ministry of Energy from the controls it conducts in the market show that the increases in fuel prices in Cyprus are justified.
During the discussion in the Energy Committee, the Director of the Consumer Service, Konstantinos Karagiorgis, noted that the limits of the current fuel prices in Cyprus are acceptable. In fact, he stressed that in our country the increase in prices is lower than the EU average. As he said, Cyprus maintains the 4th and 5th place in the lowest prices in the EU in relation to gasoline and heating oil.
Mr. Karagiorgis stated that the service monitors all prices on a daily basis, automatically receiving all daily data regarding prices in Platts, the exchange rate of the European Central Bank, the data of the companies' imports and the retail prices from all gas stations.
They did not reduce prices
Consumers have a different opinion. According to the president of the Consumers' Association, Marios Drousiotis, 19 gas stations did not reduce the consumption tax and 97 gas stations reduced the price by less than 8,33 cents per liter.
The president of the Fiscal Council, Andreas Charalambous, commenting on the government's compensatory measures, said that it is better to make targeted spending than tax relief, noting that this mainly benefits the high-paid earners.
