Lawmakers on Friday voted into a law with an overwhelming majority, a harmonising bill over the quality of petrol and diesel on the market aimed to promote energy from renewable energy sources.
As a result, fuel prices are expected to hike in 2020.
A total of 35 MPs voted in favour and three against, the law which sets a seven per cent cap effective in 2020 on how much biofuel and bioliquid can be produced from wheat, sugar or starch to be used for transport.
Currently legislation sets out national binding targets which outline that at least 13 per cent of gross final energy consumption must stem from renewable energy sources and 10 per cent of final energy consumption in transport should come from renewable energy.
The new law allows the government to conclude bilateral agreements on statistical (percentage-based) transfer of energy from renewable sources and on the amount of energy coming from biofuels and bioliquids in order to achieve the binding national transport targets for 2020.
Nonetheless, the harmonisation comes nine months later than it should, as it should have passed on September 10, 2017.
Nonetheless, it was submitted to parliament on May 18 this year.
Chairman of the House commerce committee Angelos Votsis said the law would prohibit the use of biofuels in excess of seven percent in the fuel mix, a figure which in any case Cyprus does not manage to achieve.
As a result of the law, fuel prices will increase however he said the committee would meet with the energy minister next month to discuss reducing fuel tax.