Fuel prices fall in Cyprus as Brent prices decline amid stabilization in the Strait of Hormuz

Retail prices for petrol and diesel in Cyprus are declining for the second week in a row, responding quickly to the drop in global crude oil benchmarks. Between 3 and 16 June 2026, the price of a litre of petrol at local filling stations fell by 4.2 cents, while diesel became noticeably cheaper — by 8.2 cents at once. According to relevant services, this is only the beginning of the trend: in the near future retail chains may cut a further 10 cents per litre as warehouse stocks are replaced by new deliveries.

The main driver of the global price decline has been diplomatic progress in the Middle East. After Washington and Tehran announced that they had reached compromise agreements that fully removed the threat of supply disruptions and restored freedom of commercial shipping in the strategically important Strait of Hormuz, the oil market moved downward. On Monday, 15 June, benchmark Brent prices plunged by almost 5%, and by 16 June they had fallen to around 80 dollars per barrel, hitting their lowest level since the beginning of March this year. It should be recalled that at the peak of the spring escalation, Brent exceeded 111 dollars, but over the past month alone it has lost about 25%. Since Cyprus’s retail fuel market is directly tied to the international Platts index for petroleum products, cheaper crude has gradually begun to reach Cypriot petrol stations, exerting a moderating effect on overall inflation in the republic.

At present, according to the Consumer Protection Service, the average price of 95-octane petrol on the island stands at €1.564 per litre (with prices at stations ranging from €1.499 to €1.658), diesel at €1.712 (from €1.648 to €1.887), and heating oil at €1.391 (from €1.338 to €1.479). Over the past two weeks, however, the price of heating oil has remained unchanged. Nevertheless, experts note that it is still too early to talk about a return to pre-war price levels. The current drop only partially offsets the spring surge. Since the start of the full-scale regional conflict (from 27 February to 16 June 2026), petrol has risen by a total of 25.4 cents per litre, diesel by 30.6 cents, and heating oil by 44.2 cents.

The main question for Cypriot drivers now revolves around 30 June, when the temporary tax relief officially expires. The government discount, which reduced excise duty on petrol and diesel by 8.33 cents per litre, was introduced by President Nikos Christodoulides as part of a broad anti-crisis package worth 200 million euro. If the Council of Ministers does not decide to extend this relief, the automatic return of the previous excise rate from 1 July could completely wipe out and offset all the current benefit from falling global oil prices. The situation is further complicated by earlier complaints from the Cyprus Consumers Association that part of the state discount had previously been absorbed into the margins of petrol station owners rather than passed on to end consumers. Although there are no clear signs of speculation in the market at present, analysts urge caution, noting that significant time will be needed for the economy to fully stabilise and for inflationary pressure to ease.