No final word on fuel tax cuts as Cyprus tracks Middle East escalation

Finance Minister Makis Keravnos on Friday said the ministry is preparing multiple scenarios and measures to mitigate potential economic fallout from the war in Iran.

The minister stressed that developments are being closely monitored, as authorities assess how the situation may evolve and affect Cyprus.

“At this moment, the finance ministry is processing scenarios and we are monitoring developments,” Keravnos said following a meeting with Edek president Nikos Anastasiou.

“Depending on these developments and the duration of these crises, we are preparing plans to mitigate any problems that may arise,” he added.

The statement came amid growing concerns over the economic impact of the Iran conflict, particularly on businesses and households in Cyprus.

When asked whether measures under consideration include a reduction in fuel taxes, the minister indicated that no final decisions have yet been made.

“The measures have not yet been specified, but we are processing various scenarios that include everything,” Keravnos said.

He further stated that the timing and nature of any intervention will depend on how the crisis unfolds, highlighting the uncertainty surrounding the situation.

“What will be implemented will be judged at the given moment,” the minister said.

Keravnos also underlined that the ministry has long experience in managing crisis conditions, noting that developments have been monitored continuously over recent years.

“The finance ministry continuously monitors developments and has been monitoring them for more than two years because now we have the war in Iran, but previously we had the war in our region, in Gaza,” Keravnos said.

The minister pointed to ongoing efforts to tackle the cost of living, which, he said, have been in place for some time now.

“We have been implementing measures against high prices for the last two to two and a half years, which we have recently renewed,” Keravnos concluded.