Austria to implement temporary fuel price reduction

The Austrian government coalition, comprising the ÖVP, SPÖ, and NEOS, has decided to implement a fuel price brake starting October 1. This temporary measure, set for October and November, aims to mitigate rising oil prices by reducing the mineral oil tax by 6.7 cents per liter and capping trade margins by 3.5 cents per liter. The total reduction is expected to be approximately 12.2 cents per liter, potentially saving drivers between 5 and 6 euros per tank.

While the measure is intended to curb inflation by an estimated 0.2 percentage points, it has faced criticism. The Austrian Economic Chamber (WKÖ) warned that limiting margins could make Austria less attractive for fuel imports. Additionally, Herbert Kickl, leader of the FPÖ, argued that the 12-cent reduction is insufficient. He cited an unreleased study suggesting that climate policy goals for 2040 could lead to fuel price increases of 60 cents per liter by 2030 and up to one euro per liter by 2035.

The FPÖ is calling for more drastic measures, including the abolition of CO2 pricing and a halving of mineral oil taxes, warning that increased transport costs could eventually impact the prices of goods and services.