Fuel Price Brake Shrinks to 0.8 Cents Per Liter from July

How far fuel prices have fallen from their peak is shown by the latest data from E-Control. On Monday, the average price for diesel in Austria stood at 1.699 euros per liter, and for premium gasoline at 1.648 euros. Compared with the high on 30 March, diesel is thus 54 cents cheaper and super 26 cents.

Price Development at the Filling Stations

A comparison with the previous month also shows a clear decline. Across June, diesel cost an average of 1.779 euros and thus around 14 cents less than in May. Eurosuper stood in June at 1.694 euros per liter, roughly ten cents below the previous month's figure. The trend thus continues downward.

Nevertheless, the VCÖ demands that the debate over fuel prices not be narrowed to the tax component. „Erstens sind jene, die damals die Transportpreise erhöht haben, gefordert, die Preise wieder zu senken“, Schwendinger said. „Zweitens ist die Politik gefordert, die Umstellung auf Elektro-Lkw und die Verlagerung auf die Schiene zu forcieren und damit Österreich unabhängiger von Dieselimporten zu machen“, Schwendinger continued.

From Peak Value to June Average

As an example of a successful transformation, the VCÖ points to the Netherlands. There, 83 percent of newly registered small trucks are now registered with electric motors. The share is thus six times as high as in Austria, where only 13.5 percent of new registrations are accounted for by electric drives.

A look at the price composition shows why a small tax cut is barely noticeable in the end. For diesel, the liter price currently consists of 47 percent net price, 27 percent mineral oil tax, 9 percent CO2 pricing, and 17 percent value-added tax. For gasoline, the net price is 42 percent, mineral oil tax 33 percent, carbon dioxide taxation 6 percent, and value-added tax 17 percent.

VCÖ Demands

Historically, mineral oil tax in Austria is deeply anchored in infrastructure policy. Until 1987, it was earmarked and flowed directly into road construction. Since then, it has flowed into the general budget. As early as 1995, the calculation basis was switched from kilograms to liters, which led to a creeping increase in price during the conversion.

The VCÖ additionally recommends fuel-efficient driving to reduce the burden independent of political measures. This includes driving more slowly, for example 100 or 110 instead of 130 kilometers per hour on the highway, driving with anticipation and at low revs, avoiding roof boxes where possible, and ensuring correct tire pressure.

Outlook and International Comparisons

A consumption reduction of around 20 percent is of considerable significance, the VCÖ calculates. Such a saving would have the effect, for diesel, of one liter costing 1.36 euros instead of 1.70 euros. This way, the relief from one's own driving style can be significantly increased.

Overall, the tax brake remains a political signal whose financial lever has shrunk. While fuel prices have eased noticeably on the markets, consumers can hardly benefit any longer from the mineral oil tax cut. The discussion over the long-term direction of mobility and tax policy is likely to pick up speed in the coming weeks.

In the long term, the VCÖ points to international comparison to increase pressure on domestic policy. In the Netherlands, the share of electric small trucks is already six times as high as in Austria. Countries such as Germany and Poland are also cited as references in the debate.

Fuel Saving as an Alternative

From the perspective of the Ministry of Economic Affairs, the fuel price brake was conceived as a time-limited relief. The now sharply reduced continuation is a reflection of the price development on international commodity markets. Should fuel prices rise again, the measure could be recalibrated according to earlier statements.

With the halving of the tax bonus, the fuel price brake loses its character as a tangible relief. What remains is a political discussion about the transformation of transport, the electrification of the utility vehicle fleet, and the question of how Austria can reduce its dependence on diesel imports.

Price Composition and Historical Classification

For the immediate cost development at the pump, the miniaturization of the bonus means above all one thing: refueling will not become more expensive, but the small price advantage from the tax cut is dwindling to a minimum. Those who want to save should, according to the VCÖ, start best with their own driving behavior.