Cyprus parliament approves temporary fuel tax reduction

The Cypriot Parliament has unanimously approved a temporary reduction in fuel excise duties to mitigate the economic impact of the Middle East conflict. The measure, which will cost the state an estimated €18.6 million, takes effect on Saturday, 6 April, and remains in place until the end of June. Excise duty on petrol will decrease from €0.429 to €0.359 per litre, while diesel will drop from €0.40 to €0.33 per litre, including VAT. Although the reduction was announced on 26 March, implementation was delayed to allow businesses time to adjust pricing. Several MPs expressed concerns regarding potential profiteering, prompting calls for the Ministry of Commerce and the Consumer Service to increase oversight. Government officials noted that further support measures may be considered if market conditions deteriorate. Additionally, a 5% VAT rate on electricity for all domestic consumers was confirmed to apply from 1 May 2026 to 31 March 2027.