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Cyprus Fuel Sales Fall In May As Government Extends Tax Relief

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.

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.

Cyprus Company Registration: Two To Four Days, Unless Security Checks Intervene

Cyprus aims to register companies within two to four working days when applicants submit complete documentation. However, regulatory approvals, sanctions checks, foreign ownership and national security considerations can extend the process or prevent registration.

Energy, Commerce and Industry Minister Michael Damianou outlined the timeframe in a written response to MP Efrem Christou, who asked about company formation procedures and the checks required before approval.

Fast Registration Depends On Complete Documentation

Damianou said authorities seek to process complete applications within two to four working days, regardless of a company’s structural complexity. The timeframe also depends on whether applicants pay an additional fee for expedited processing.

According to the official incorporation requirements, the standard registration fee is €165, rising to €235 for companies without share capital. Expedited processing costs an additional €100.

Applicants must submit an approved company name, a memorandum and articles of association, and forms HE1, HE2 and HE3. Public companies must also provide form HE5.

Regulated Businesses Require Additional Approval

Companies operating in certain sectors must obtain prior clearance from the relevant authorities or professional bodies. These include medical and dental businesses, law firms, insurance and reinsurance companies, and firms supervised by the Cyprus Securities and Exchange Commission.

The Central Bank of Cyprus must also approve company names associated with payment institutions, electronic money and foreign exchange services. Additional restrictions apply to educational institutions using terms such as “university” or “college”, casino operators, broadcasters and wine producers.

Non-profit organisations seeking to register without “Limited” or “Ltd” in their names also require ministerial authorisation.

Sanctions And Foreign Ownership Trigger Extra Checks

Applications involving shareholders, directors or company secretaries subject to EU, UN or US sanctions receive additional scrutiny. Registration can proceed only if the competent sanctions authority does not prohibit it. Damianou noted that US sanctions are considered indirectly but have not been incorporated into Cyprus legislation in the same way as EU and UN restrictions.

Applications involving Turkish interests are also subject to additional review. Under procedures introduced around 20 years ago, the registrar must consult national security services before proceeding with registrations involving Turkish interests or businesses that could threaten the Republic’s security.

Damianou distinguished these cases from applications submitted by Turkish Cypriots, saying there is “no substantial difference” in how their registration documents are examined. Applications may nevertheless be refused if classified information raises concerns about national interests or national security.

Public Servants Face Separate Restrictions

Under Article 65 of the public service law, government employees cannot act as directors, company secretaries or shareholders in private or public companies without prior special permission from the finance minister.

Proposed Law Would Expand Registrar’s Powers

The government is also seeking to strengthen the Registrar of Companies’ authority to address potential security risks. An amendment to the companies law, submitted to Parliament on September 17, would allow the registrar to reject applications, refuse company filings or remove existing businesses from the register on grounds including national security, public order, public interest and the protection of state sovereignty.

The proposal, approved by the Council of Ministers on August 6, remains before the House commerce committee. It would allow authorities to withhold detailed justifications where disclosure could reveal sensitive information, while informing affected companies of the general grounds for decisions.

The bill follows parliamentary discussions about companies controlled by non-EU nationals, particularly those with Turkish ultimate beneficial owners, and possible implications for property ownership through foreign-controlled businesses. Further details are available in the proposed amendment and earlier parliamentary reporting.

Balancing Investment And Oversight

Cyprus is seeking to maintain an efficient company registration process while strengthening checks on ownership, sanctions compliance and potential security risks.

The two-to-four-day target supports the country’s appeal to entrepreneurs and international investors, but the actual timeline depends on the nature of the business, the documentation submitted and any additional regulatory or security reviews required.

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