The finance minister will ask Cabinet to extend the 8.33-cent-a-liter relief as high energy costs threaten to squeeze household budgets into 2027.
Finance Minister Makis Keravnos will ask Cabinet to extend the tax break on petrol and diesel, possibly until March 2027, giving drivers a chance to hold on to some relief at the pump. The catch is that the government is preparing for high energy costs to keep squeezing household budgets into the new year.
The current break expires Nov. 30 and is worth 8.33 cents a liter on both fuels. If renewed at the same rate, it would keep about €4.17 off a 50-liter fill-up compared with what drivers would pay without the tax break. Pump prices could still rise or fall as fuel costs change.
Speaking after Wednesday’s Cabinet meeting, Keravnos said the international energy crisis was raising costs for families and businesses alike. He warned that inflation could climb further under current conditions. Cyprus’ Statistical Service reported that petroleum products were 25.8% more expensive in September than a year earlier, while consumer prices overall rose 3.7%.
Heating oil is already getting some relief
A separate tax cut on heating oil took effect Oct. 23 and runs through April 30, 2027. The Consumer Protection Service put the reduction at 6.39 cents a liter, including VAT, or nearly €32 on a 500-liter delivery if the full cut is passed on.
The agency checked 290 filling stations on the day the cut took effect. At 268 stations, the retail price fell by at least the full amount. At the other 22, prices fell by less, stayed the same, or rose.
Keravnos said the government has asked the European Commission about cutting heating oil duty further and is awaiting a response. For drivers, the next decision is closer to home. Cabinet still has to consider whether to extend the petrol and diesel tax break beyond the end of this month.
