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The large increase in fuel prices seen in Cyprus at the end of last week was due to a Parliament approved tax hike.
 

In the presence of Finance Minister Charilaos Stavrakis, parliament passed an “urgent” government bill putting an extra 8.5 cents tax on diesel products and six cents on unleaded petrol.
 

This is in order to bring Cyprus into line with minimum rates of excise duty on diesel and unleaded petrol as required by EU law.
 

An EU directive dating back to 2003 has been delayed in implementing in Cyprus until now.  The Government is also delaying as long as possible its EU tax obligations regarding an increase in VAT on food and medicines.
 

Stravrakis said that passing the bill is good for state finances as it will generate around €65m extra for state coffers.
 

Fuel in Cyprus will still remain one of the cheapest in Europe.
  
  

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