Fuel prices for vehicles in Cyprus have surged by 20.5 percent between May 2025 and May 2026, according to recent Eurostat data. This sharp increase aligns closely with the European Union average of 20.7 percent during the same period, reflecting a widespread trend across member states. The rise followed a period of general price decreases, with the escalation linked primarily to the onset of the Iran conflict in February.

Monthly data shows a mixed trend in Cyprus, with diesel prices dropping by 1.5 percent from April to May, while petrol prices rose by 2.1 percent. Inflation in Cyprus slightly eased to 2.6 percent in May, but petroleum products remained a notable exception with significant price volatility. Recent geopolitical developments, including a tentative agreement between Iran and the United States, have contributed to a decline in fuel prices. However, instability persists, illustrated by Iran's closure of the Strait of Hormuz over ceasefire violations, keeping the outlook uncertain.