Government spokesman Konstantinos Letymbiotis said on Tuesday that fuel prices in Cyprus remain among the lowest in the European Union, despite growing pressure from developments linked to the war in the Middle East.
Speaking during a press briefing at the Presidential Palace, Letymbiotis said the situation is being closely monitored and continuously assessed, with potential support measures under consideration depending on how the crisis evolves.
Ongoing monitoring and support measures
He noted that the impact of the crisis is global and not limited to Cyprus, adding that its extent will largely depend on the duration of the conflict.
Existing support measures remain in place, including electricity subsidies and a zero VAT rate on basic goods. According to the latest data, Cyprus has the second lowest price for unleaded 95 petrol in the EU and the fourth lowest price for diesel.
Asked whether reduced VAT measures, currently in force until April 1, could be extended, Letymbiotis said all options are under review by the Ministry of Finance of Cyprus and the Ministry of Energy Commerce and Industry of Cyprus. He added that the country’s strong fiscal position allows the government to take targeted measures to support households if necessary.
Tourism and economic outlook
Responding to criticism that the government had overstated the crisis and negatively affected Cyprus’ image abroad, Letymbiotis said normality continues in the country. He stressed that the measures taken were aimed at ensuring safety during a period of heightened regional instability.
He also thanked European partners for their support, noting that while flight schedules were initially disrupted across the region, most flights have now resumed, except for destinations directly affected by the conflict. Letymbiotis expressed optimism for the upcoming tourist season, describing Cyprus as a safe and high-quality destination.
Pressure at the pump
Fuel prices are nevertheless on an upward trend. The price of 95-octane petrol has risen by 11.7 cents per litre, with further increases expected in the coming week, adding pressure on households and reviving calls for state intervention.
Speaking to Politis Radio, Virginia Christou said current prices are significantly higher than in March 2022, when fuel subsidies were introduced. She warned that rising fuel costs are likely to affect electricity prices and called for the immediate reinstatement of subsidies, describing them as necessary to protect consumers.
Market snapshot
As of 14:30 on March 17, the average price of unleaded 95 petrol stands at approximately €1.439 per litre, with prices ranging from around €1.339 to €1.620. Diesel averages approximately €1.613 per litre, with the lowest price at about €1.419 and the highest reaching €1.698.
These fluctuations reflect the upward pressure on fuel markets, as global energy costs continue to be influenced by developments in the Middle East.