Cyprus Consumers Association alleges fuel retailers withheld government subsidies

The Cyprus Consumers Association has accused retail fuel stations of failing to fully pass on a government-mandated fuel tax reduction to motorists. The government Cabinet approved a fuel subsidy of 8.33 cents per liter, effective from April 4, 2026, until the end of June 2026. The association monitored diesel prices between 9:30 p.m. on April 3 and 10:00 a.m. on April 4 using the Ministry of Energy, Commerce and Industry's retail price application. Findings indicate that as of 9 a.m. on April 4, many stations did not reduce prices at all, while 97 stations lowered them by less than the required 8.33 cents. The association claims that fuel retailers unjustifiably absorbed a portion of the subsidy. Meanwhile, the Consumer Protection Service attributed the smaller-than-expected price decreases to rising international fuel costs. The association has formally rejected this justification, maintaining that the subsidy was not fully transferred to the end consumer.