Relief at the Gas Station

12-Cent Savings: Gas Price Cap Finalized

Filling up will become cheaper again: There will be noticeable relief in October and November.(Bild: Pressefoto Scharinger/Daniel Scharinger)

More than ever, the federal government is set to intervene in prices at Austria’s gas stations. In October and November, drivers will save 12.2 cents per liter at the pumps—a reduction that will also be covered by the oil companies themselves.

First, Lower Austria’s Vice Governor Stephan Pernkopf called for it in the “Krone.” Then ÖVP state governors Thomas Stelzer and Johanna Mikl-Leitner joined the call—and on Wednesday, the federal government’s new fuel price cap was announced. With this move, the three-party coalition is responding to global political developments surrounding the Bab al-Mandab Strait, which has been blocked by the Houthi militia and through which prices had recently skyrocketed again.

More relief than ever
This time, however, the government intends to tighten the cap even further. The relief per liter is set to be 12.2 cents, up from 10 cents at the start and most recently 1.9 cents. The relief consists of a 6.7-cent reduction in the mineral oil tax and a 3.5-cent reduction in the oil companies’ margin per liter. Because this also reduces the value-added tax payable accordingly, the total relief amounts to over 12 cents per liter.

A Two-Month Solution
The new price cap will be implemented for two months initially—October and November. Depending on the global political situation and corresponding price trends, a new decision will be made for the last month of the year.

“The escalation in the Middle East and the associated ‘Trumpflation’ have once again led to a significant rise in fuel prices. We are countering this trend with the new fuel price cap, which will bring prices at the pumps down. The federal government’s policy is intended to help ensure that people in Austria can look to the future with optimism,” explains Chancellor Christian Stocker. 

SPÖ and NEOS Also Satisfied
Vice Chancellor Andreas Babler adds: “We’ve always said that we won’t let inflation run rampant. We’re keeping our word and reimposing the fuel price cap. A full tank of gas will cost commuters and families about five euros less.”

All satisfied: Babler, Stocker, Meinl-Reisinger(Bild: APA/HELMUT FOHRINGER)

And NEOS leader and Foreign Minister Beate Meinl-Reisinger adds: “Targeting these price spikes without simultaneously jeopardizing security of supply and competition is now the order of the day. By expanding the fuel price cap through tax measures, we as the federal government are taking precise action to counter this and continuing our consistent efforts in the fight against inflation. Our focus is on easing the burden on Austrians in their daily lives and ensuring that inflation remains below the EU average.”

Chamber of Commerce President Jochen Danninger considers the margin interventions “unacceptable.”(Bild: Eva Manhart)

Sharp Criticism from the Chamber of Commerce
“Intervening in profit margins is a serious mistake and completely unacceptable. While diesel imports from the Middle East are plummeting and even the U.S. is considering export restrictions, Austria is deliberately jeopardizing the security of supply. Austria must not make its market unattractive to importers through price and margin interventions. Instead of planned-economy experiments, we finally need real relief through a reduction in the mineral oil tax and a suspension of CO2 pricing,” explains WKÖ Secretary General Jochen Danninger.