Fuel in Cyprus rose by 20.5% over the year: reasons and outlook

According to fresh Eurostat data, in May 2026 retail prices for automotive fuel in Cyprus were 20.5% higher than in the same period last year. This figure almost matched the EU-wide trend, where the increase amounted to 20.7%. The main trigger for the sharp price spike was the start of the military conflict between the US/Israel and Iran at the end of February 2026, which pushed Brent crude quotations above 111 dollars per barrel. Although by mid-June global commodity prices had adjusted to 80 dollars, fuel prices at filling stations on the island still remain well above prewar levels.

Current price dynamics and the situation at filling stations:

— Month-to-month fluctuations and current average prices. The domestic market situation remains mixed: from April to May, diesel fell by 1.5%, while gasoline increased by 2.1%. By June 16, the average price of a liter of AI-95 gasoline in Cyprus stood at €1.564, diesel fuel — €1.712, heating oil — €1.391. The local decline in retail petroleum products is linked to the fall in the international Platts index (to which Cyprus is tied) following oil prices. Experts from the relevant services allow for a further price drop of 10 cents in the near term.

— Territorial imbalance. Within the country, strong retail competition persists, as does a wide price spread even within the boundaries of a single administrative district. The difference between the most expensive and the most affordable filling station reaches 17 cents per liter of gasoline and 23 cents per liter of diesel. At the same time, the Cyprus Consumers Union emphasizes that the decline in wholesale oil prices is not fully passed on to end drivers.

The June 30 factor and market risks:

The main short-term risk for car owners is the expiration of state subsidies. On June 30, 2026, the period of the temporary fuel excise tax reduction by 8.33 cents per liter, introduced by President Nikos Christodoulides as part of an anti-crisis package of measures, comes to an end. If the government does not extend this relief, the automatic return to the previous tax rate will offset most of the recent benefit from the fall in global oil prices. In addition, the head of the Consumer Protection Service, Konstantinos Karagiorgis, notes that it is too early to talk about long-term stabilization due to the continuing threat to shipping in the Strait of Hormuz.