“A glimmer of hope”

Greens Agree: Fuel Price Cap Is Coming!

The Greens will approve the fuel price cap “with minimal changes to the legislative text.” Criticism arose nonetheless.(Bild: APA/ROLAND SCHLAGER)

An agreement has now been reached in the battle over the fuel price cap! The Greens tipped the scales; party leader Leonore Gewessler announced that they would approve the government’s plans “with minimal hope.” However, Gewessler did not hold back on criticism. Representatives of the coalition parties pointed out in this context that they would tighten the measures if necessary. 

The coalition can only achieve the necessary two-thirds majority for the full impact of the planned measures to reduce fuel prices starting April 1 with the approval of either the Greens or the FPÖ. The FPÖ has already issued a clear rejection. 

“Don’t leave people facing price pressures on their own”
On Wednesday, the Greens, represented by Leonore Gewessler, voiced harsh criticism: “This federal government has no solid plan; the scope is too limited. But I am convinced that we cannot leave people facing this price pressure on their own. After all, the people in this country are the least to blame for Donald Trump’s belligerence or that of the Iranian mullahs, and for the fact that Austria is dependent on international markets and their price spikes.”

Therefore, they will approve the plans: “We Greens will not serve as an excuse for the government’s failure to deliver results here.” With her party’s approval, the federal government will have the opportunity to demonstrate that it is serious about a long-term energy transition.

The Greens will approve the fuel price cap “with minimal changes to the text of the bill.” There was criticism nonetheless.(Bild: APA/ROLAND SCHLAGER)

No approval for lowering the mineral oil tax
The massive dependence on fossil fuels must finally end, said the federal spokesperson for the Greens: “The government has recently shifted into reverse gear here, making electric cars more expensive and raising the price of the climate ticket.” Appropriate measures are now expected, explained the former climate protection minister.

Gewessler rejected a reduction in the mineral oil tax, stating there would be no approval for this. However, the government does not need a two-thirds majority for this measure, so it could be passed solely with the votes of the three-party coalition consisting of the ÖVP, SPÖ, and NEOS. 

Regulation is renewed monthly
Representatives of the governing parties ÖVP, SPÖ, and NEOS also pointed out at a separate press conference that the relevant regulation is renewed monthly. The first regulation, which is set to take effect on April 1, cannot be changed anymore, explained NEOS MP Karin Doppelbauer. However, it can be tightened further if necessary. SPÖ parliamentarian Alois Schroll also noted the involvement of E-Control and the Federal Competition Authority, which would monitor price developments.

ÖVP MP Tanja Graf explained that the current draft regulation provides for a 5-cent reduction in refinery margins. The aim is to prevent market distortions in the gas station market and ensure that small gas stations do not have to close. She also pointed out that the regulations could be suspended at any time should supply shortages threaten.

Economy Minister Wolfgang Hattmannsdorfer (ÖVP) also welcomed the Greens’ approval. Regarding the cause of the rising oil and gas prices, the minister said: “We will not be able to prevent fuel prices from rising further. But we can certainly do everything in our power to mitigate the full impact on inflation, so that Austria comes through this crisis economically better than other countries.”

The Greens had been quite critical in the negotiations since the beginning of the week, describing the government’s plans in advance as a “disaster.” Time is of the essence; the fuel price cap is expected to pass the National Council as early as Wednesday or Thursday. 

The proposed legislation would allow the government to temporarily lower the mineral oil tax and cap the margins of refineries and gas stations via decree should diesel or gasoline prices rise by more than 30 percent over a two-month period. According to government estimates, this would result in savings of about ten cents per liter.

Criticism from the FPÖ
As expected, the Freedom Party (FPÖ) leveled fierce criticism at the Greens’ approval. “The Greens are now making the ‘loser coalition’ an accomplice to their failure to assist the population in the face of this fuel price madness,” FPÖ Secretary-General Michael Schnedlitz and his party colleague Christian Hafenecker stated in a press release. The Freedom Party had previously presented its own model for a fuel price cap, which, however, would result in a loss of tax revenue of around 3.4 billion euros.