Diesel fuel in Cyprus is the most expensive in history. Over 100 stations are selling fuel for over €2.

The average price of diesel fuel in Cyprus has risen to record highs 1.997 euros per literThis is more than during the fuel crisis in 2022. At over 100 stations, diesel costs over €2, and the highest recorded price is 2.098 euros per liter.

The price hikes could continue. Energy expert Charalambos Ellinas predicts that diesel prices could rise in the next two months. 2.10–2.20 euros per liter, and high fuel prices may persist until mid-2027. Consumer organizations and station owners are appealing to the government to reduce VAT or return additional tax revenues to residents.

The 2022 record has been broken

According to data from the Cyprus Retail Fuel Prices Observatory, the average price of diesel on Friday, September 25, was 1.997 euros per liter.

This exceeded the previous record set on July 12, 2022. The average price of diesel fuel at that time was EUR 1,989.

Current rates at individual stations fall within a very wide range:

• the lowest diesel price – 1,879 euros per liter,
• average price of diesel – 1,997 euros per liter,
• the highest price of diesel – 2.098 euros per liter.

The difference between the cheapest and most expensive stations is almost 22 cents per liter. When filling 50 liters, choosing a different outlet can mean a difference of over 10 euros.

Marios Drousiotis, president of the Cyprus Consumers' Union, estimated that the average price could exceed €2 in the near future. Increases announced by importers do not appear at all stations simultaneously. They are usually introduced gradually over two or three days.

Some retailers may not change their prices until Monday. This means that even if the average stays slightly below €2 over the weekend, subsequent price list updates could push it above that level.

Gasoline still below record

95 octane gasoline is also becoming more expensive, but its average price still remains below the historical high of 2022.

Currently, a liter of 95 octane petrol costs:

• cheapest – 1,613 euros,
• on average – 1,718 euros,
• the most expensive – 1,798 euros.

The record average price in July 2022 was €1.828 per liter. This has not yet been exceeded, although further increases are possible.

The situation for those using heating oil is much worse. Its average price has risen to 1.608 euros per liter, setting a new record. In July 2022, it was €1,515.

Currently, heating oil is sold at prices ranging from 1,489 to 1,735 euros per liter.

Diesel can cost up to €2.20

Energy expert Charalambos Ellinas predicts that within one or two months the price of diesel fuel in Cyprus could exceed 2.10–2.20 euros per liter.

He believes the problems won't end with the next fuel delivery. High diesel and jet fuel prices could persist until mid-2027.

Ellinas points to two main reasons:

• limiting the operation of Russian refineries damaged in drone attacks,
• decline in exports of diesel and other petroleum products from the Persian Gulf region.

The problem isn't just the price of oil. Even with periodic price drops, finished diesel fuel can remain very expensive due to limited production capacity and tighter supply.

Rising fuel costs could impact transportation, retail prices, and services. Increases could be particularly noticeable for goods imported to the island or transported by truck.

Organizations demand VAT reduction

The Cyprus Consumers' Union and the Association of Petrol Station Owners are appealing for additional state aid.

Marios Drousiotis points out that as prices rise, budget revenues from VAT also rise. According to his calculations, the state currently receives additionally:

• 7.5 cents VAT on every liter of petrol,
• 11 cents per liter of diesel,
• 12.34 cents per liter of heating oil.

The organizations propose reducing VAT on fuel or returning additional tax revenues to residents in the form of protective measures.

Drousiotis proposed reducing the VAT rate from 19% to 5%, similar to the reduction in electricity. Aid for heating oil is particularly urgent before the winter season.

Cyprus currently has a reduced excise tax on fuel. This reduction reduces the tax by approximately 8.3 cents per liter and has been extended until the end of November. Without it, prices at the pump would be even higher.

It's hard to give up your car in Cyprus

Fuel industry representatives point out that Cypriot residents have few real options to limit their car use.

Outside the centers of major cities, public transport often provides no convenient way to get to work, school, or the office. In many towns, the private car remains the primary means of transportation.

For this reason, fuel consumption hasn't fallen in proportion to rising prices. Drivers can reduce their travel, but in many cases, they can't completely eliminate it.

Rising prices are no longer just a harbinger. Diesel has set a new historic record, with the €2 mark exceeded at over 100 stations. If expert forecasts prove accurate, drivers will face challenging months ahead.

Sources: Cyprus Consumer Protection Service Retail Fuel Price Observatory, Cyprus News Agency, Philenews, Cyprus Mail