The recent increase in Cyprus’s fuel prices is due to the government’s decision to end a tax reduction on petrol, diesel, and heating oil, with hikes of 4.5 cents, 1.3 cents, and 0.4 cents per litre respectively. Consumers are now facing significantly higher prices postreinstatement, leading to financial strain for many.
The government is addressing fuel price surges with targeted measures to support the middle class and vulnerable demographics, implementing green taxes to encourage sustainable practices, and reforming pension policies to ensure fiscal responsibility and equity. These strategic approaches aim to balance immediate relief with longterm economic stability. Finance Minister Makis Keravnos emphasized the government’s active role in tackling the issue and acknowledged the broader European context impacting fuel prices, highlighting the need for changes in consumption patterns to ensure economic stability and sustainability.
Fuel prices in Cyprus are set to skyrocket in April due to the end of government subsidies, with petrol, diesel, and heating oil prices expected to rise by 8.3 cents, 8.3 cents, and 6.3 cents per litre respectively. The introduction of a proposed green tax could further increase fuel prices by at least 1415 cents per litre, potentially increasing costs by around 10%.
Fuel prices are soaring in Cyprus due to multiple factors such as the end of subsidies, carbon taxes, OPEC+ cuts, and global economic growth. Motorists are facing an uphill battle as prices are expected to rise further, with crude oil surging, refining capacity decreasing, and green taxes looming on the horizon.
President Nikos Christodoulides raised concerns about rising motor fuel prices, which could lead to higher costs for goods and services due to increased transportation expenses, emphasizing the need for sustainable energy solutions. European Commission President Ursula von der Leyen praised President Christodoulides for his leadership in navigating economic challenges and implementing proactive measures to support the country’s economy.
President Nikos Christodoulides warns of an impending 8.3cent rise per litre for gasoline and diesel in Cyprus due to the termination of a reduced consumption tax and introduction of a green tax as part of the Recovery and Resilience Plan commitment.
The Cyprus Consumers’ Association is demanding greater transparency from the fuel monitoring authority on fuel prices in Cyprus, due to a discovered discrepancy where consumers paid 45 cents more per litre than the EU average, resulting in an excess of €4.5 to €5.5 million. They call for accountability and fairness in pricing, pressing for clarity and detailed explanations to address the observed disparities.
