Further talks

No agreement on fuel price cap for the time being

The war in the Middle East has recently driven up fuel prices.(Bild: P. Huber)

Despite hours of negotiations, the government has been unable to agree on a fuel price cap. The ÖVP and SPÖ are pushing for completely different approaches. The result: for the time being, smaller steps will be taken. However, the coalition wants to continue working on a genuine price cap.

The ministerial council presentation, which is available to the "Krone" newspaper, refers to "smoothing out the unusual price fluctuations for fuels." Specifically, starting next Monday, price increases at gas stations will only be allowed three times a week—on Monday, Wednesday, and Friday. Price reductions will still be possible at any time.

The ÖVP originally wanted tax cuts, while the SPÖ wanted direct market intervention by means of a margin cap. The NEOS were more in line with the ÖVP, but generally more cautious than the other two government partners.

Oil reserves to be released
Furthermore, the term of the strategic gas reserve will be extended and the state oil reserves will be released to dampen prices. An internationally agreed release of oil reserves is intended to contribute to global price stabilization.

No one should profit from the crisis
In point four of the ministerial council proposal, the government states that it will hold further talks on a fuel price cap. According to the paper, work is underway on a legal basis "to be able to respond even more decisively and flexibly to fuel price developments in current and future crisis situations, with the aim of stabilizing fuel prices." "These models are intended to ensure that neither the state nor the energy companies benefit from extraordinary revenues or extraordinary profits in this crisis situation, while at the same time ensuring security of supply."

The government also wants to advocate at the European level for the further development and reform of the Emissions Trading System (ETS) and the merit order system. Work is currently underway on an energy crisis mechanism. In the event of prolonged price crises, this mechanism would set the working price of electricity for households and SMEs at ten cents per kWh. Its entry into force will be brought forward to the beginning of July 2026.