Chaos in the coalition

Fuel prices: Different ideas, but no solution

The vice chancellor and chancellor are suddenly falling over themselves with proposals to curb rising fuel prices.(Bild: APA/HELMUT FOHRINGER)

Rising fuel prices are causing concern in domestic politics. However, the government does not have a joint plan and various proposals are being thrown around. Vice-Chancellor Andreas Babler, for example, wants a fuel price cap based on the Croatian model, while Chancellor Christian Stocker is calling for a temporary reduction in fuel taxes.

"The price shocks of the past must not be repeated. That is why it is important that we do not repeat the mistakes of our predecessors. We cannot accept that a few people are profiting from this crisis, from this war. When fuel prices rise, it must not become a gold mine for a select few. We must regulate the market and intervene structurally," said Babler in an interview with the "Krone" newspaper.

Clear formula for price cap
The SPÖ leader suggests Croatia as a possible model for Austria, as the Orbán model has led to bottlenecks and queues at gas stations in Hungary. The Croatian model, which caps profit margins on fuel prices, is in line with European law and has proven successful.

Under the Croatian price cap, the maximum price is set regularly using a clear formula: the maximum price is composed of the reference wholesale price plus a limited trade margin and taxes.

Hintergrund

Spritpreisbildung

Der Spritpreis setzt sich aus dem Rohölpreis, der Marge der Raffinerien und der Tankstellen sowie Steuern und Abgaben wie der Mineralölsteuer zusammen. Der Benzinpreis liegt derzeit bei rund 1,7 Euro pro Liter und ist damit in den vergangenen Wochen deutlich gestiegen – um 20,5 Cent im Vergleich zum Durchschnittspreis im Februar 2026. Ein Großteil dieser Preissteigerung, ca. 19 Cent, ergibt sich nach Schätzungen in etwa jeweils zur Hälfte aus gesteigerten Margen und einem höheren Einkaufspreis für Rohöl.

Tax cuts would cost the state a lot of money
Reducing taxes such as the mineral oil tax is also an option that is being discussed, but: "I am skeptical about tax cuts, as this is a structural market problem. We have to tackle the root of the problem," said Babler. A reduction in the mineral oil tax would also require considerable budgetary resources. But this is exactly what Chancellor and ÖVP leader Stocker is calling for. 

The situation has worsened since the outbreak of war in Iran. There should be no crisis profits at the expense of motorists, says Stocker. And in such a situation, the state should "not become a crisis profiteer and enrich itself at the expense of the people."

Additional tax revenue back to the taxpayer
"Additional tax revenues resulting from rising energy prices should therefore not remain in the state budget, but be returned to the people in the form of targeted relief. The federal government is currently intensively examining and negotiating which model is the most accurate and effective for this. I am in favor of a temporary reduction in fuel taxes."