Cyprus extends reduced excise duty on gasoline and diesel until November 30
The Cypriot government has extended the reduced excise duty on gasoline and diesel fuel until November 30. The decision was made by the cabinet of ministers at the proposal of the Ministry of Finance, Cyprus Mail reports. The previous relief period was due to expire on September 17.
Reduced excise duty rates
Finance Minister Makis Keravnos said that the government had extended the reduction in excise duty on gasoline and diesel by 8.33 euro cents per liter. The current relief provides for reducing the excise duty on gasoline from €0.429 to €0.359 per liter, and on diesel from €0.40 to €0.33. The stated amounts include VAT.
According to Keravnos, the decision reflects the government's intention to continue supporting households and businesses as geopolitical events affect energy markets. He also noted that no new measures beyond those already announced are currently being considered.
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Prices and party proposals
The minister said that fuel prices are affected by international market fluctuations, financial markets, and statements related to geopolitical events. Three days before his statement, gasoline in Cyprus was selling for €1.59 per liter. Keravnos claimed that the country had the lowest gasoline prices among EU states after Bulgaria.
Disy MP for Famagusta Nikos Georgiou called for additional measures to protect consumers because of an expected increase in fuel prices, in his words, linked to new EU sustainability requirements. In his assessment, the proposed legislation could add around 7 euro cents to the cost of a liter of diesel and 2.5 euro cents to gasoline. The Akel party separately called for abolishing VAT on fuel excise duty, calling it double taxation.
Christodoulos Christodoulou, a representative of the petrol station owners' association, had previously reported a slight increase in retail prices over the preceding two weeks. According to the government's estimate, the current excise duty reduction has already saved consumers €15.5 million.
