6 euros per tankful

How the new fuel price cap will be financed

Now the question is how to finance the new cap.(Bild: APA/HARALD SCHNEIDER)

The three governing parties have agreed on a new fuel price cap valid for two months. This is expected to reduce the cost of filling a 50-liter tank by six euros. It is now also clear how the government will finance this perk for drivers.

A full 12.2 cents less per liter for two months: As is well known, the federal government’s new fuel price cap has been approved. Until now, the question that inevitably arises with any relief measure remained unanswered: Who pays the bill? The three-party coalition’s answer is: the drivers themselves, through their own sales tax, and the oil companies, with money they have yet to earn. 

Mineral Oil Tax at the EU Minimum
The principle is well known. Back in the spring, Finance Minister Markus Marterbauer (SPÖ) had already made it clear that the cap must not burden the budget: Only the additional VAT revenue generated by higher fuel prices may be distributed. When the price at the pump rises, the government automatically collects more in sales tax. The government is now returning this additional revenue in order to lower the mineral oil tax by 6.7 cents.

Advance on Additional Revenue
In addition, the reduction in the mineral oil tax is also financed by an advance on the expected additional revenue from the “Fossil Energy Crisis Contribution” for the year 2026. This is based on the excess profits tax that fossil fuel companies are required to pay. The key point: The law initially allocated only 10 million euros for this contribution, but the government now expects significantly more. It is not disclosing exactly how much more.

The oil industry is thus being asked to foot the bill in two ways: once through the excess profits tax and once directly through its margins. Refineries and traders must reduce their profit margins by 3.5 cents per liter.