Cyprus extends reduced fuel tax rate for two months

The government's decision to prolong the lower consumption tax provides temporary relief for motorists and businesses, though the measure remains a short-term fix rather than a permanent policy shift.

By Handelsavisen Newsroom · Automated 2026-06-24 11:02 UTC · 1 min read

The Cypriot government has approved a two-month extension of the reduced fuel consumption tax rate, which has been in effect since April.

The measure, which was scheduled to expire at the end of June, will now remain in place through August, according to government spokesman K.

The decision aims to provide continued relief for consumers and businesses facing elevated energy costs during the summer period.

The extension reflects the government's ongoing effort to manage inflationary pressures on household budgets without committing to a permanent reduction in tax revenue.

By prolonging the lower rate, authorities seek to stabilize fuel prices for motorists and logistics operators during a typically high-demand season.

The move is likely to be welcomed by consumer groups and transport sectors that have benefited from the temporary tax cut since its introduction in April.