Nicosia: Petrol and diesel prices are set to increase in 2028 as a result of harmonising national legislation with EU requirements on biofuel blending. Compensatory support measures worth £174 million will be provided to vulnerable groups to offset the impact. According to Cyprus News Agency, a representative from the Ministry of Finance informed the House Energy Committee that diesel prices will rise by about 7 cents per litre, while petrol will see an increase of 2.5 cents per litre.
The harmonisation bill aims to promote renewable energy sources, including sustainable fuels in aviation, in line with EU directives. The compensatory measures are planned to support vulnerable groups from 2027 to 2032. The Ministry of Finance representative indicated that the bill would take two months to submit to the EU, which would then require four months for examination.
Grant schemes are expected to start in 2027, with the new pricing system coming into effect the following year. The ministry official noted that member states could initiate support schemes a year earlier to facilitate a smoother transition for those affected by energy and transport poverty.
The support package will be financed through £131 million in EU funds and £43 million from national funding. The Ministry of Energy's Permanent Secretary, Kyriakos Iordanou, acknowledged that harmonisation would lead to higher fuel costs, as the bill adheres to European regulations. An Energy Service representative highlighted the EU directive's requirement to meet binding overall targets, including specific goals for the transport sector.