Cyprus plans to extend reduced motor fuel taxes until March 2027 and has asked the European Commission for a further excise duty cut on heating oil to ease energy costs.
The Cyprus Finance Minister, Makis Keravnos, announced the plan on 4 November 2026 after the Council of Ministers meeting, that the government wants to keep lower taxes on motor fuel in place for longer.
The current reduction expires at the end of November 2026, and the government plans to ask the Council of Ministers to renew it, possibly until March 2027.
The current reduction covers motor fuels and ends this month. The statement did not give a new rate or a percentage change for the extension.
The same day, the Finance Minister also raised a separate request to Brussels for a further cut in excise duty on heating oil. Cyprus has asked the European Commission for a further cut in excise duty on heating oil. The request sits with the Commission’s energy and taxation services.
The minister will attend Eurogroup and the Economic and Financial Affairs Council (ECOFIN) meetings on 8 November 2026, where fuel taxes, energy costs, and Cyprus’s treatment under EU fiscal rules are expected to be discussed.
