Drivers will continue to benefit from reduced fuel excise duties after the House unanimously approved a two-month extension of the measure on Thursday.

The House passed the amendment with 38 votes in favour under an emergency procedure, extending the reduced rates until August 31, for the measure had been due to expire at the end of this month.

The legislation preserves the existing reductions of 8.33 cents per litre on petrol and six cents per litre on diesel.

The government estimates the extension will cost approximately €12 million.

The decision follows cabinet approval earlier this week, whereupon government spokesman Konstantinos Letymbiotis said the extension was justified because energy prices, while lower than previous peaks, remain above normal levels due to international developments.

He said the government acted after considering that prices are “still at higher levels than normal, due to geopolitical developments”.

The proposal was examined by the House finance committee in an extraordinary session before being referred to the plenary for a final vote.

The reduced fuel duty was first introduced as part of a broader package of cost-of-living measures announced in March.

Other measures included a temporary zero rate of VAT on meat, poultry and fish and the postponement of planned environmental levies on fuel.

Fuel prices remain a politically sensitive issue in Cyprus, where transport costs affect households, businesses and supply chains across the economy.

Previous parliamentary discussions also included calls from some deputies for a reduction in VAT on fuel.

However, at present EU rules do not permit such a measure under current legislation.