Energy costs continue to put pressure on family budgets and business. Over the year, electricity in Cyprus has risen by 11.2%, and fuel by as much as 25.8%, according to data from the Statistical Service.

The government has already allocated about €70 million to support the population: subsidies for electricity, a reduction in the excise tax on fuel, zero VAT on certain goods, and benefits for solar panels. However, price increases are effectively absorbing a significant part of this assistance.

Now Cyprus is seeking greater freedom from the EU for additional measures. Among the options under discussion are a further reduction in taxes on fuel, a possible abolition of VAT on electricity, and the easing of European restrictions.

⛽ At the same time, on the island gasoline and diesel remain a particularly sensitive expense item: due to weak public transport, many families depend on several cars at once.

The main question for the authorities now is not only about new subsidies, but how to stop a situation in which another price increase almost immediately nullifies the effect of state support.

@cyprus_kipr