On 23 October 2026, the Cyprus Consumer Protection Service (CPS) published an inspection report revealing that 22 petrol stations across the island failed to pass on the full excise duty reduction on heating oil to consumers. The tax cut, implemented by the Ministry of Finance effective 1 October 2026 under the Excise Duty Law (N. 395/2026), reduced the excise rate on heating oil by EUR 0.05 per litre to mitigate the impact of soaring global energy prices. The CPS conducted spot checks at 150 stations between 1 and 20 October 2026 and found that 22 stations retained the tax savings, charging consumers the pre-cut price. Under Article 12 of the Consumer Protection Law (N. 106/2024), retailers are legally obliged to reflect any tax reduction in the final selling price within 48 hours of its enactment.
Key Takeaways
- Enforcement Action and Penalties: The CPS has issued immediate compliance orders to the 22 non-compliant stations, requiring them to reduce prices retroactively and refund overcharged amounts to identifiable consumers. Failure to comply within 10 business days will result in fines of up to EUR 50,000 per station under the Consumer Protection Law, with repeated violations risking temporary closure orders.
- Consumer Refund Mechanism: The watchdog has established an online portal for consumers to submit receipts from the affected stations between 1 and 23 October 2026 for automatic refund processing. The CPS estimates that approximately 15,000 households may be eligible for refunds averaging EUR 12 per household, totaling an estimated EUR 180,000 in recoverable overcharges.
- Ongoing Monitoring and Sector-Wide Compliance: The Ministry of Energy, Commerce and Industry announced an expanded inspection program covering all 450 licensed fuel retailers through December 2026. The program will also verify compliance with the parallel VAT reduction on electricity bills announced in September 2026. Retailers are urged to audit their pricing systems and ensure automatic tax pass-through mechanisms are operational to avoid penalties.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement