Cyprus records one of EU’s highest annual fuel price increases in June

Cyprus and Italy only EU nations with monthly petrol price increases Cyprus recorded one of the European Union’s highest annual increases in fuel prices in June 2026, even as retail prices continued to ease from the peaks triggered by geopolitical tensions in the Middle East, according to Eurostat data and recent statements from Cypriot officials. The latest Eurostat figures showed that the price of fuels and lubricants for personal transport in Cyprus increased by 18.6 per cent in June 2026 compared with June 2025, placing the island among the countries with the sharpest annual rises in the bloc. Across the EU, fuel and lubricant prices increased by 13.7 per cent year on year in June 2026, following even stronger annual increases of 20.8 per cent in April and 20.7 per cent in May. Although prices continued to rise in every EU member state compared with a year earlier, the pace of annual inflation slowed in June, after four countries had recorded increases exceeding 30 per cent in May. Bulgaria registered the highest annual increase in June at 26.0 per cent, followed by Lithuania with 23.5 per cent, Romania with 23.1 per cent, Finland with 22.0 per cent, and Luxembourg with 20.7 per cent. Cyprus ranked among the countries experiencing the strongest annual increases, while Hungary recorded the smallest rise at 2.3 per cent, followed by Poland at 5.8 per cent. Among the remaining member states, annual increases ranged from 7.9 per cent in Spain to 18.6 per cent in Cyprus. Despite the strong year-on-year increase, fuel prices across the EU declined on a monthly basis in June. Compared with May 2026, diesel prices fell by 6.4 per cent across the EU, while petrol prices declined by 4.2 per cent. This followed a 5.8 per cent monthly decline in diesel prices during May, while petrol prices had increased slightly by 0.8 per cent between April and May. What is more, Eurostat said diesel prices decreased in every EU country between May and June 2026. The largest monthly falls in diesel prices were recorded in the Czech Republic at 11.3 per cent, Poland at 9.7 per cent, and Bulgaria at 9.4 per cent. The smallest decreases were seen in Hungary at 0.6 per cent, Italy at 1.4 per cent, and Slovenia at 1.6 per cent. For petrol, Cyprus and Italy were the only EU countries to record monthly price increases, with prices rising by 0.7 per cent and 0.5 per cent respectively between May and June. All other member states recorded monthly declines in petrol prices, with the largest reductions reported in Sweden at 7.8 per cent, Belgium at 7.0 per cent, and Poland at 6.6 per cent. The Eurostat data comes as Cyprus continues to monitor the impact of instability in the Middle East on domestic fuel prices. Earlier this month, Consumer Protection Service director Constantinos Karayiorkis said retail prices had fallen steadily in recent weeks but remained above the levels seen before tensions escalated between Israel and Iran. “We cannot make reliable predictions about the future course of fuel prices,” Karayiorkis said, warning that renewed instability around the Strait of Hormuz could quickly reverse the recent downward trend. “We hope calm will prevail so prices can return to the relatively low levels seen before the conflict,” he added. According to the Consumer Protection Service, between June 2 and July 9 the average price of unleaded 95 petrol fell by 14.4 cents per litre, while diesel declined by 34.9 cents per litre. On July 9, 2026, the nationwide average price of unleaded 95 petrol stood at €1.467 per litre, with prices ranging from €1.389 to €1.569. Average diesel prices stood at €1.570 per litre, with the cheapest recorded price at €1.484 and the highest at €1.767. Karayiorkis explained that retail prices in Cyprus typically lag international oil market movements because imported fuel usually takes around ten days to reach the island. He also said that refinery prices had remained relatively low in recent weeks, helping support the decline in retail fuel prices. At the same time, Cyprus has joined nine other EU member states in calling for the bloc to reconsider the introduction of a new carbon price on transport and heating fuels planned for 2028. Cyprus, Greece, Bulgaria, Italy, Poland, the Czech Republic, Estonia, Hungary, Romania and Slovakia signed a joint statement urging the European Commission to rethink the new emissions trading system, known as ETS2, as part of a wider revision of the EU carbon market. The commission is expected to propose revisions to the emissions trading system under its One Europe, One Market roadmap, with agreement targeted by the first quarter of 2027. “European citizens should not be facing new climate taxes in current economic and geopolitical circumstances,” the ten countries said in their joint statement. “ETS2 should therefore be addressed directly in the revision and carefully reconsidered,” the statement added. The EU has already postponed the introduction of the new carbon pricing mechanism by one year, although supporters argue that it is essential for encouraging cleaner transport and heating systems, with revenues intended to help households finance the transition.