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Fuels: the relief is to be extended, but price increases are planned from 2028

Drivers will likely avoid an 8.33 cents per liter increase on September 17. Finance Minister Makis Keravnos is expected to propose extending the reduced excise tax for another two months, until November.

This is only a temporary relief, however. During parliamentary proceedings, it was also revealed that, from 2028, implementing new renewable energy requirements could increase the cost of diesel by about 7 cents per liter and gasoline by about 2.5 cents.

The rest of the article is below

Will 8.33 cents stay in drivers' pockets?

The current excise tax reduction expires on September 17. As announced during a meeting of the Parliamentary Trade Committee, the Ministry of Finance intends to extend the measure for another two months.

Keravnos is expected to present the proposal at the next meeting of the Council of Ministers. The relevant legislation will then have to be submitted to parliament. Until this process is completed, the extension of the tax relief will be suspended. it is not yet finally decided.

CHECK ALSO
Just yesterday we wrote about what could happen to prices if the relief expired on September 17:
https://cyprnews.pl/diesel-moze-zblizyc-sie-do-2-euro-za-litr-kluczowy-bedzie-17-wrzesnia/

The current relief means that petrol and diesel are cheaper by 8.33 cents per liter including VATIf extended, this gap will remain at least until November.

From 2028, diesel prices may increase by another 7 cents

Forecasts for 2028 are much less optimistic.

The project, which adapts regulations to EU requirements regarding renewable energy sources, assumes, among other things, an increase in the share of more sustainable fuels in transport.

A representative of the Energy Service informed the MPs that the current use of biofuels already increases the cost of fuel by approximately 4–5 cents per liter.

If the new targets were achieved mainly by further increasing the share of biofuels, the estimated additional cost would be approximately:

7 cents per liter of diesel,
2.5 cents per liter of gasoline.

In the case of diesel, the share of biofuel would have to increase to around 17%, according to the presented estimates.

This does not mean, however, that on January 1, 2028, prices at gas stations will automatically increase by these amounts. These are the current estimates of the additional cost resulting from the implementation of new requirements.

The state is preparing 174 million euros of support

At the same time, protective measures are being prepared to address the increased costs resulting from the new European Emissions Trading System.

The package for particularly vulnerable households is to be worth approximately 174 million euros – €134 million is to come from EU funds, and €40 million from the state budget. The first subsidy programs are to be launched in 2027.

The Ministry of Transport has also prepared a new subsidy program for electric cars, aimed at people particularly vulnerable to high energy and transport costs.

For drivers, this means two completely different perspectives: An 8.33 cent increase will probably be avoided in the coming weeks, but from 2028, pressure on fuel prices may increase again.