Cyprus to lower fuel excise duty from April 4: gasoline −8.33 cents, diesel −6 cents

In Cyprus, a government measure to reduce the consumption tax on fuel will take effect from April 4, although it was originally planned for April 2. The decision was presented to the Finance Committee on Thursday and a plenary vote is expected; upon publication in the Official Gazette on Friday, the reduction will take effect from midnight on Saturday.

The measure provides for a reduction in the excise duty on gasoline by 8.33 cents per liter and on diesel fuel by 6 cents per liter. Naya Symeonidou (Νάγια Συμεωνίδου), Head of the Tax Policy Department of the Ministry of Finance in Cyprus, explained that the step is appropriate given the rising fuel prices due to the conflict in the Middle East and aligns with Eurogroup recommendations: the action is temporary, until the end of June, with a subsequent reassessment. The total cost of the initiative is estimated at €18.6 million.

The effective date was postponed from April 2 to April 4 to give companies time to align retail prices in the event of rapid publication of the act. Simultaneously, a decree was published to reduce VAT on electricity to 5% for all domestic consumers from May 1, 2026, to March 31, 2027.

The Consumer Protection Service will monitor the passing on of price reductions to the final consumer; responsibility for inspections and sanctions lies with the Ministry of Commerce. MPs emphasized the need to strengthen control and prevent speculation: DIKO MP Christiana Erotokritou (Χριστιάνα Ερωτοκρίτου) called for increased inspections, AKEL MP Christos Christofides (Χρίστος Χριστοφίδης) pointed to the risk of "one-sided" transmission of price changes, and DISY MP Savia Orphanidou (Σάβια Ορφανίδου) raised the issue of targeted application of VAT rates.