Austria will strengthen its petrol price brake from October as the government moves to shield motorists from rising fuel costs linked to higher oil prices and disruption in global energy markets.
The government said the petrol-tax reduction will increase to 6.7 euro cents per litre from October 1, compared with the current 1.9 cents. It will also reintroduce a cap on fuel retailers’ margins, reducing them by 3.5 cents per litre. The measures will remain in place throughout October and November.
The intervention comes after the government initially introduced the fuel price brake in April, combining a tax reduction with restrictions on retailers’ margins for a total relief of 10 cents per litre. The margin restriction was removed in June as fuel prices eased.
The latest measures reflect renewed pressure on consumers as geopolitical tensions disrupt oil supplies and push up prices at petrol stations. The government has linked the recent inflationary pressure to the conflict in the Middle East and its impact on energy markets.
Austria’s latest move also highlights the wider challenge facing European governments as they attempt to contain the effect of energy shocks on household budgets while limiting the inflationary impact of higher transport and production costs.
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