Cyprus seeks heating oil tax relief

Keravnos to push for action on energy costs at EU finance meetingsFinance Minister Makis Keravnos will press for measures to ease the impact of energy costs on households and businesses during Eurogroup and ECOFIN meetings in Luxembourg on October 8 and 9, 2026. In a statement from the Finance Ministry on Wednesday, Keravnos said his main priority would be ensuring that decisions taken by eurozone and EU finance ministers take account of the effects of energy developments on households and businesses. Cyprus has already sought a specific measure that would reduce the burden of winter heating costs. “As I have already said publicly, we have requested a derogation on the excise duty on heating oil, to reduce a cost that households feel directly, especially in winter,” he said. The government is also seeking greater room to respond to economic pressures within the EU’s fiscal framework, working alongside other European nations. “Together with other member states, we are also making the case for additional fiscal space, with greater flexibility within the economic governance framework, so that governments can effectively support and protect citizens and businesses when circumstances require it,” Keravnos said. He also argued that existing EU rules should be capable of responding to exceptional circumstances. “The rules must keep pace with reality, and the framework has already shown that it can adapt when energy security is at stake,” he added. At ECOFIN, ministers are expected to focus on the market integration and supervision package, which is intended to deepen cooperation across European financial services. “A more integrated European market for financial services will make it easier for businesses to access finance and will strengthen Europe’s competitiveness,” Keravnos said. Cyprus will support the Irish presidency’s efforts to reach an agreement while seeking safeguards that take account of differences between large and small financial markets. “We will contribute constructively to the Irish Presidency’s efforts to reach an agreement, while asking that the specific characteristics of smaller markets, such as Cyprus, be considered,” he added. Keravnos said the discussions should ultimately balance economic performance with the interests of citizens. “Europe’s competitiveness and the protection of its citizens must go hand in hand, and this is the approach I will take in the discussions,” he concluded.