Fuel costs | Cyprus loses its price advantage

The Mediterranean island has long been one of the EU countries with the lowest fuel prices. But the costs at the pump are also rising there.

In front of a supermarket in Nicosia: The overall increase in the cost of living is still limited. Photo: imago/Joko While Europe-wide protests against rising living costs are driving citizens onto the streets, things remain comparatively quiet in Cyprus - at least for the time being. But frustration with the government is also growing on the Mediterranean island. The reason: prices at the pumps have been rising for months. Cyprus has long been considered one of the countries with the lowest fuel prices in the EU. According to the European Commission's "Weekly Oil Bulletin" from January 2025, the country was one of the three cheapest countries in the EU with a super gasoline price of 1.39 euros per liter. The EU average was 1.67 euros, Germany 1.78 euros. Diesel also cost 1.46 euros less in Cyprus than in Germany (1.67 euros). With a 50-liter tank of premium gasoline, drivers in Cyprus saved almost 20 euros compared to drivers in Germany.

But now the price advantage is dwindling. In October, Cypriots paid around 1.76 euros per liter for premium gasoline, while diesel has now broken the two-euro mark (2.02 euros). The country is still below the EU average of 2.01 euros per liter of petrol and 2.14 euros per liter of diesel and is still some way away from German top prices of up to 2.47 euros for diesel - but dissatisfaction is growing.

Diesel has now also broken the two-euro mark in Cyprus.

The reasons for the increase are varied. In addition to geopolitical tensions and restrictions on global oil supply, higher transport costs and taxes are also driving up fuel prices in Cyprus. This was stated by Constantinos Hadjistassou, professor and energy expert at the University of Nicosia, in the Morning Briefing radio program on the Politis news portal.

The country is particularly vulnerable to international energy price fluctuations as electricity generation remains heavily dependent on oil and other fossil fuels, Hadjistassou continued. "While consumers used to spend between 30 and 50 euros per refueling session, many now only spend around 20 to 30 euros," observes Marios Drousiotis, President of the Cypriot Consumer Protection Association. Heating oil is also affected.

Cyprus' infrastructure illustrates the dilemma facing the population: the island has no railway network and "no adequate public transport system, which is why consumers rely on their private vehicles," says Drousiotis. According to a data analysis by Deutsche Welle and the European Data Journalism Network (EDJNet), over 90 percent of the buses in the capital Nicosia run on combustion engines.

The German federal government is also trying to curb rising fuel prices. A limited fuel discount has been in effect since October 1st and will expire at the end of the year. The energy tax on petrol and diesel was reduced by 14 cents per liter. Including the VAT effect, this results in a possible relief of around 17 cents per liter.

Cyprus introduced its fuel discount on April 1st. The measure, which originally expired in June, was extended several times until November 30th due to the sharp rise in prices. Despite the tax cut, fuel prices have continued to rise. Consumer advocate Drousiotis believes the relief is too small given the significantly higher price increases. At the same time, he criticizes the fact that the state is benefiting from higher prices through the 19 percent VAT on fuel. "The state should return the additional revenue it is currently collecting to the citizens in order to relieve them of the significant increases in fuel prices," he demands.

The rising prices are now also leading to fuel tourism. A spokesman for the Cypriot customs authority confirmed to state broadcaster (CyBC) in October that more Greek Cypriots were traveling to northern Cyprus to refuel. As an indicator, he pointed to the increased amounts of fuel confiscated at the crossings. In the Turkish Cypriot north, gasoline costs the equivalent of 1.38 euros per liter due to the devaluation of the Turkish lira and government-set maximum prices - around 20 percent less than in the south. Tank tourists even save around 30 percent on diesel.

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