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The trending technological research platform is Internet of Things (IoT)and most probably it will stay that way for a while. One of the main application areas of IoT is Cyber-Physical Systems (CPSs), in which IoT devices can be leveraged as actuators and sensors in accordance with the system needs. The public acceptance and adoption of CPS services and applications will create a huge amount of privacy issues related to the processing, storage and disclosure of the user location information. As a remedy, our paper proposes a methodology to provide location privacy for the users of CPSs. Our proposal takes advantage of concepts such as mix-zone, context-awareness, and location-obfuscation. According to our best knowledge, the proposed methodology is the first privacy-preserving location service for CPSs that offers adaptable privacy levels related to the current context of the user.