Cyprus Reduces Fuel Excise Duty by 8.33 Euro Cents per Liter Starting April 1

In Cyprus, a temporary reduction in excise duties on motor fuels will take effect from April 1, 2026 — the measure is valid until June 2026 and was announced by the government in Nicosia.

The excise duty has been reduced by 8.33 euro cents per liter, reaching the minimum levels allowed by European Union legislation: for gasoline, the rate dropped from €0.429 to €0.359 per liter, and for diesel, from €0.40 to €0.33 per liter. According to government calculations, this will decrease the cost of gasoline by approximately 5.9% and diesel by 5.1%, with average retail prices expected at €1.43 per liter for unleaded 95 and €1.67 per liter for diesel.

The decision was made amid a sharp monthly price increase recorded by the Retail Price Observatory for the period from February 27 to March 26: the price of unleaded 95 rose by 20.2 euro cents from €1.314 to €1.516 per liter, diesel by a record 34.8 euro cents from €1.410 to €1.758, and heating oil by 27.7 euro cents from €0.949 to €1.226. According to Platts, global prices for gasoline, diesel, and heating oil have risen significantly since late February, with Brent trading around $100 per barrel.

For residents of Cyprus, the practical benefit is a reduction in the fuel tax burden and potential price stabilization at gas stations from April 1 to June 2026. Authorities state that the measure is temporary and aimed at mitigating the impact of global price spikes.