Diesel in Cyprus could rise to almost €2 per litre after 17 September

Diesel fuel in Cyprus could rise to almost €2 per litre if the reduced fuel excise duty is not extended after 17 September. Christodoulos Christodoulou, vice-president of the Pancyprian Association of Petrol Station Owners, told the Cyprus News Agency (CNA).

According to him, prices at petrol stations have been rising in small steps over the past two weeks, with diesel seeing the sharpest increase. The reason is international market prices: the price of a barrel of oil rose over the week from approximately 80 to 90–91 dollars. Even petrol station operators themselves are not yet prepared to estimate how this will affect prices in Cyprus: companies must first receive shipments purchased at the higher market prices.

The key date for drivers is 17 September, when the reduced excise duty expires. The measure cuts the excise duty on petrol from €0.429 to €0.359 per litre and on diesel from €0.40 to €0.33. If it is not extended, fuel will automatically become 8.33 cents per litre more expensive including VAT — both 95- and 98-octane petrol and diesel.

The extension until 17 September was approved by the Finance Ministry at the request of most parties, so that the issue could be revisited in the autumn when Parliament resumes its work. According to the ministry’s estimate, the postponement will save citizens €15.5 million. Finance Minister Makis Keravnos said on 25 August that the measures are “being constantly assessed, including in light of developments”, while specific decisions are taken “at the right moment”. He recalled that, according to the European Commission’s recommendations, such measures should be targeted and short-term.

There are no supply problems: Cyprus purchases fuel from Greece and Israel, and the geopolitical situation in the region has not yet affected supplies. Consumption during the holiday season remained roughly at last year’s level, while petrol station operators note that some drivers travel to Northern Cyprus for cheaper fuel.

Separately, the association of petrol station owners is concerned about the price of heating oil: it has approached €1.50 per litre, whereas at the end of last winter it stood at around €1.10. Filling a 1,000-litre tank now costs approximately €1,500, and by winter this will become a noticeable burden on family budgets.