Coalition Considers Reintroducing Fuel Price Brake as Diesel Price Climbs Toward 2 Euros Again

Prices Once Again Approaching Peak Levels

The escalation in the Iran war has recently caused oil and fuel prices to rise significantly again. The 10-cent fuel price brake introduced in April, which consisted of a reduction in the mineral oil tax and a cap on margins, was gradually reduced in the following months. After 1.7 cents per liter in June, the mineral oil tax reduction for July under a monthly ordinance amounts to just 0.8 cents per liter.

From coalition circles it was stated to Ö1 that there should be initial negotiations on a renewed fuel price brake. The top priority was supply security, according to a joint statement to Ö1 and the Salzburger Nachrichten. No specific timing or scope of possible measures was initially announced.

Chamber of Commerce Rejects the Measure

The Chamber of Commerce expressed opposition. Managing Director Hedwig Doloszeski told the Salzburger Nachrichten: "Nein, den brauchen wir nicht." She pointed out that, from the business perspective, the measure was not necessary. Instead, the Chamber of Commerce is calling for no further restrictions on the market economy.

Trade Union Federation Calls for Margin Regulation

The ÖGB Trade Union Federation most recently called for an "wirksame Margenregelung" for diesel and heating oil. The union argues that the previous reduction in the mineral oil tax alone is not enough to provide meaningful relief for consumers. The mineral oil tax is a consumption tax levied on the retail price of fuels.

Outlook: Focus on Supply Security

While the coalition deliberates on further action, the situation on the fuel market remains tense. The monthly ordinance allows the government to adjust the mineral oil tax at short notice. A full return to the original 10-cent fuel price brake would require both a significantly larger tax cut and a renewed margin cap. Whether and in what form such a measure will come remains open.

Observers point out that price developments are closely tied to the geopolitical situation in the Middle East. A further escalation in the Iran war could push prices higher, while a de-escalation would open room for fuel prices to fall. The government announced that it would continue to closely monitor the situation.