Cyprus government submits urgent bill to reduce fuel consumption tax

On Thursday, the Cypriot government is submitting an urgent bill to the House of Representatives to reduce the excise tax on motor fuels. The legislation, prepared by the Ministry of Finance and approved by the Cabinet on March 26, 2026, aims to alleviate inflationary pressures caused by global energy price hikes linked to geopolitical conflicts between Iran and Israel/USA. The bill authorizes the Minister of the Interior to make necessary adjustments during parliamentary processing without requiring further Cabinet approval. Christodoulos Christodoulou, spokesperson for the Association of Gas Station Owners, noted that diesel prices have surged, recently approaching 1.90 to 2.00 euros per liter. While the fuel tax reduction is expected to be implemented by the end of the week following parliamentary approval and publication, it remains unclear whether heating oil will be included in the subsidies. The measure is designed to support both consumers and businesses facing significantly increased operational costs.