Cyprus to end its fuel tax break

As of April 1, the reduced consumption tax on fuel in Cyprus will come to an end, reverting to 8.3 cents per liter for gasoline and 6.3 cents per liter for heating oil.

Konstantinos Karagiorgis, director of the Consumer Protection Service at the Ministry of Energy, Trade and Industry, stated that “the reintroduction of the consumption tax on fuels is expected at midnight on the last day of the current month.” He added that this means the tax of 8.3 cents per liter will be reinstated for 95-octane gasoline and diesel, and 6.3 cents per liter for heating oil.

Karagiorgis noted that there has been a significant decrease in prices in the fuel sector over the last quarter, which halted two weeks ago, followed by price stabilization. However, in recent days, there have been minor increases in fuel prices.

Additionally, Cyprus currently boasts the cheapest fuels in Europe, according to the European Price Observatory.

Regarding the removal of the VAT subsidy and the reinstatement of VAT on 11 specific product categories, Karagiorgis mentioned that VAT will be reinstated to nine categories by April 30 and the remaining two categories, concerning meat and vegetables, by May 31.