The Austrian government announced plans to reduce fuel prices by more than 12 cents per liter in October and November through a combination of tax cuts and reduced margins for petroleum companies.
The mineral oil tax will be lowered by 6.7 cents per liter, bringing the diesel rate down to the EU minimum, the government said. Additionally, profit margins at mineral oil companies will be reduced by 3.5 cents per liter. The combined effect also lowers the value-added tax applied to fuel, pushing total relief above 12 cents per liter.
Chancellor Christian Stocker (ÖVP) described the move as part of the government's broader fight against inflation, calling it a top priority. "The policy of the federal government should help people in Austria look to the future with confidence," he said in a statement.
A fuel price brake was first introduced in April but had recently tumbled to just a few cents in savings. The latest measure marks a significant step-up.
The announcement came as regional governments across Central Europe moved to ease fuel costs for consumers. Germany will cut its energy tax on diesel and gasoline by around 14 cents per liter from October 1 through December 31. Including VAT, that translates to relief of up to 17 cents per liter at the pump, according to the German government.
Austrian fuel prices have climbed more than 50 cents per liter since the start of the Iran conflict, the government noted. A similarly sharp spike occurred in early 2022 following Russia's invasion of Ukraine.
