Here's what Taxler & Co. have to say.

New Gas Price Cap: “The Right Step, But…”

The federal government is expanding the fuel price cap.(Bild: canva)

The federal government’s new fuel price cap is expected to save drivers more than 12 cents per liter starting in October. The “Krone” gathered reactions to this from Upper Austria. While the motorists’ club, taxi drivers, and others welcome the measure, they feel it doesn’t go far enough.

Starting in October, the fuel price cap in Austria will be tightened again, resulting in savings of 12.2 cents per liter of gasoline and diesel—more than ever before. The measure consists of a reduction in the mineral oil tax (expected to yield 6.7 cents), a reduction in margins for oil companies (3.5 cents), and the resulting decrease in value-added tax—as reported by the “Krone.”

“I consider the fuel price cap itself and the relief it provides to end consumers to be a very good measure. I believe it was long overdue and is coming at just the right time,” says Bernd Zierhut, chairman of the Upper Austrian Energy Industry Association, regarding the government’s measure. However, for Zierhut, there is one major “but”: “I consider it a scandal that the government is interfering with companies’ margins. To me, that’s completely alien in a free-market economy.” His argument: Oil prices are rising, but Upper Austrian companies can’t do anything about that—they’re facing higher costs themselves as a result and are now having their margins cut.

ARBÖ Calls for More Aid for Commuters
Thomas Harruk, regional director of the motorists’ club ARBÖ, takes the opposite view of the fuel price cap. While Harruk also considers the measure “a step in the right direction,” However, he says additional support is needed for commuters who rely on their cars—for example, in the form of a higher commuter allowance. And: “Even more important would be a windfall profit tax or margin cap for oil companies at the pan-European level. After all, these companies are definitely making a profit,” says Harruk.

“Only Partially Solves Our Problems”
Gunter Mayrhofer has yet another set of concerns regarding the fuel price cap—as chairman of the taxi companies in Upper Austria, he represents an industry that is, by its very nature, heavily dependent on prices at the gas pumps. “The measure only partially solves our problems,” says the spokesperson for the “Taxler” association. “Diesel has gone up by 60 cents this year, while the fuel price cap is now 12 cents. That’s certainly support from the government, but what we need is an adjustment to our contracts.” This is because both taxi fares and transportation contracts—such as those for school bus services—typically run for a year or longer. However, these contracts do not account for sudden spikes in fuel prices. If fuel gets more expensive, the fares remain the same. The result, according to Mayrhofer: “Right now, we as taxi companies are having to cover the difference. That can’t be the solution.”