Cyprus’ petroleum market weakened in May 2026 despite a month-on-month recovery in fuel demand, while the government moved to extend reduced fuel duties to ease pressure on motorists.
Annual Sales Decline Despite Monthly Rebound
Total sales of petroleum products fell 5.1% year on year to 127,538 tonnes, according to figures released on Friday by the Cyprus Statistical Service (Cystat), reflecting weaker demand across most fuel categories.
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The sharpest annual declines were recorded in kerosene, down 23.6%, followed by asphalt (-20.8%), heavy fuel oil (-18.2%) and marine gasoil provisions (-13.3%). Heating gasoil fell 11.5%, aviation kerosene provisions declined 7.5%, road diesel dropped 4.1%, and motor gasoline edged down 0.3%. Light fuel oil was the only category to record growth, rising 19%.
Sales through filling stations also declined, slipping 2.6% to 56,867 tonnes.
Transport Fuels Drive Month-On-Month Recovery
Compared with April, however, petroleum sales increased 7.7%, supported by stronger demand for transport fuels.
Aviation kerosene provisions rose 13.2%, road diesel sales increased 8.8%, and motor gasoline climbed 8.3%. Marine gasoil provisions, by contrast, fell 8.9% from the previous month. Petroleum stocks at the end of May were 7.1% higher than a month earlier.
Despite the weaker annual performance in May, total petroleum sales for the first five months of 2026 remained 3.4% above the same period last year.
Government Extends Fuel Tax Relief
The figures come amid continued volatility in global energy markets and renewed efforts by the Cypriot government to offset the impact on consumers.
On Thursday, the House of Representatives unanimously approved a two-month extension of reduced fuel excise duties under an emergency procedure, keeping the measure in force until August 31, 2026. The extension preserves cuts of 8.33 cents per litre on petrol and six cents per litre on diesel. The government estimates the additional cost at about €12 million. The reduced duties had been due to expire at the end of June.
Officials said the extension was still necessary because energy prices remain above normal levels despite easing from earlier highs. “Prices are still at higher levels than normal, due to geopolitical developments,” government spokesman Konstantinos Letymbiotis said.
The measure was first introduced in March as part of a broader package of cost-of-living support.
Fuel Prices Still Higher Than A Year Ago
Separate Eurostat data published earlier this month showed that fuel prices in Cyprus remained 20.5% higher in May than a year earlier, broadly in line with the EU average increase of 20.7%.
Monthly price movements were mixed. Diesel prices fell 1.5% between April and May, while petrol prices increased 2.1%. Although overall inflation eased to 2.6% in May, fuel continued to contribute to consumer price pressures.
Geopolitics Keeps Oil Markets On Edge
International oil markets remain sensitive to developments in the Middle East. A recent agreement between Iran and the United States initially pushed prices lower, but uncertainty has persisted following signs of instability in the ceasefire and Iran’s renewed closure of the Strait of Hormuz over alleged violations.
Savvas Prokopiou, chairman of the Petrol Station Owners’ Association, said international oil prices had stabilised at around $78 to $80 per barrel and expressed support for extending the reduced excise duties. He said he expects further reductions in fuel prices in the coming days and argued that maintaining the measure would help motorists avoid a sudden increase of more than eight cents per litre once the temporary tax relief expires.
