The reduction in excise duty on petrol and diesel will remain in place until November 30, Finance Minister Makis Keravnos announced on Thursday, extending a measure that was due to expire on September 17.

The cabinet approved the finance ministry’s proposal to extend the reduced rates by 8.33 cents per litre for both petrol and diesel.

Keravnos said the decision reflected the government’s wish to continue supporting households and businesses as geopolitical developments continue to affect energy markets.

“This arises from the government’s political will to continue to support households and businesses,” he said after the cabinet meeting at the presidential palace.

The minister said no further measures were currently under consideration beyond those already announced.

Fuel prices have been affected by international market movements, with Keravnos saying they were currently being driven less by production costs than by financial markets and statements surrounding geopolitical developments.

“Prices are constantly going up and down,” he said.

Keravnos said petrol had been selling at €1.59 per litre three days earlier and claimed Cyprus had the lowest petrol prices among EU member states apart from Bulgaria.

The existing tax reduction cuts the excise duty on petrol from €0.429 to €0.359 per litre and on diesel from €0.40 to €0.33, with the figures including VAT.

The extension follows warnings that fuel prices could rise further as international oil markets remain volatile.

Disy MP for Famagusta Nikos Georgiou has called for additional measures to protect consumers from higher fuel costs expected from new EU sustainability requirements.

Georgiou said proposed legislation could increase the cost of diesel by around seven cents per litre and petrol by 2.5 cents.

He also called for the existing tax reduction to remain in place until the end of the year and for the suspension of a proposed green tax on fuels to continue.

Akel has separately called for the abolition of VAT on fuel excise duty, describing the arrangement as “double taxation”.

Elam has also called for continued relief, citing the effect of regional instability on households and small businesses.

Petrol station owners’ association representative Christodoulos Christodoulou said earlier that pump prices had already increased slightly over the previous two weeks.

He said it was still too early to determine the full effect of higher international prices because companies had yet to receive shipments bought at the higher rates.

The government has estimated that the existing tax reduction has saved consumers €15.5 million.

Keravnos said the measure would continue for the additional period and that its future would be considered considering developments in energy markets.