President Nikos Christodoulides said on Tuesday that the government is weighing further support measures on top of more than €1 billion of aid already announced and being implemented.
Arriving at the Forbes economic summit in Limassol, he said some of the new measures needed will require the European Commission’s approval.
He said the government was monitoring prices daily, and that “we are here to respond”.
Asked whether Brussels might allow zero taxation on oil, he refused to comment on whether Cyprus has requested such.
He described a three-part plan the government is implementing, that being immediate relief which includes zero VAT on a number of products, higher disposable income through tax reform, as well as work at the Vassilikos power station to prepare for the arrival of natural gas.
Christodoulides said Cyprus can afford to act due to its “responsible fiscal policy”, the budget being in surplus for the third-year running, and that it has taken measures “others have failed to do so”.
At a European level, he said Cyprus set out its position on energy prices at the council of finance ministers (Ecofin) and raised it with leaders at the Mediterranean summit in Croatia (Med9).
It will put specific ideas to the European Council in Brussels over the next two days.
Finance Minister Makis Keravnos had told Ecofin in Luxembourg last Friday that Cyprus required greater flexibility in EU fiscal rules so governments can support households and businesses facing inflation and the energy crisis, provided changes do not undermine the sustainability of public finances.