President of Cyprus warns of sharp rise in gasoline prices

President of the Republic of Cyprus, Nikos Christodoulides, has warned of a significant increase in gasoline prices at the country's gas stations. According to forecasts, the cost per liter of fuel will rise by 14-15 cents.

The price hike is expected to take effect on April 1st, following the expiration of the reduced excise duty and the introduction of the green tax.

It is worth reminding that earlier reports indicated that the Republic of Cyprus was among the top three EU countries with the cheapest gasoline at gas stations. The country's parliament extended the validity of the reduced consumer tax on fuel until the end of March 2024.

According to the Minister of Finance of the Republic of Cyprus, Makis Keravnos, March will be the last month when the state bears the costs of reducing the fuel tax.

The current consumption tax reduction, which is valid until the end of the month, is 8.33 euro cents per liter. The total financial cost will be around 5 million euros.

It is also noted that the support measure for citizens facing electricity costs initially came into effect in March 2023 and was gradually extended until March 2024.

Nevertheless, fuel prices at gas stations continue to rise every week. In particular, on January 1st, 2024, the average price per liter of 95-octane gasoline was 1.343 euros, by February 19th, it had risen to 1.365 euros, and by February 26th, it had increased to 1.376 euros.

With the end of the fuel consumption tax reduction until March 31st, prices will rise even further.

Additionally, April 1st is the deadline for the introduction of the green tax, as mandated by the European Commission. This amounts to 5.95 cents per liter (5 + VAT).

The draft law on the introduction of the green tax was put up for public consultation on March 7th. The consultations will last until March 19th.

Under the Carbon Emissions Tax on Energy Products Act, the carbon emissions tax on motor fuel will increase from 5 cents this year to 7 cents per liter in 2025 and 10 cents in 2026.

Retail gasoline and diesel prices at gas stations can be tracked on the website of the Ministry of Energy, Trade, and Industry of the Republic of Cyprus.