Cyprus authorities have extended electricity subsidies until the end of June

The electricity subsidy will be extended until the end of June as part of the latest package of measures aimed at supporting the population. According to government estimates, the extension of electricity subsidies will cover over 400,000 households and 100,000 businesses.

The new measures were announced on Thursday after an extraordinary Cabinet meeting. Initially, the subsidy was extended in February to cover electricity consumption until April 30.

Preliminary estimates suggest that extending the electricity subsidy will cost 8 million euros.

At the time of introduction, the subsidy was about 70 euros for two months for the average consumer, but since then, the decrease in oil prices has reduced the subsidy to approximately 14 euros.

Other measures include extending zero VAT on essential goods until the end of June, including bread, milk, eggs, diapers, baby food, vegetables, fish, and meat.

Previously, the zero VAT period was due to expire at the end of May.

It is noted that the average benefit for consumers from applying zero VAT to products is approximately 7.50 euros for purchases totaling 95 euros, or eight percent.

Extending the VAT zeroing will cost the government an additional 6 million euros.

In addition, households receiving state benefits must receive three additional payments in April, May, and June, with the government describing these payments as compensation for the cancellation of the fuel tax subsidy, which expires on Monday.

The government will also pay an additional 100 euros per month to 4,200 recipients of mobility benefits in the country and an additional 100 euros per month to 28,000 low-income pensioners.