Fuel Price Brake Extended Without Margin Intervention

Austria's governing coalition parties – the ÖVP, SPÖ, and Neos – have agreed to extend the fuel price brake, ensuring continued relief for consumers at the pump. However, the extension, which will last until the end of August, will see a shift in policy. From June onwards, the government will solely reduce the mineral oil tax (MöSt) by 1.7 cents per liter. Previously implemented margin controls, which limited the profit margins of gas stations, will be discontinued. This reduction in the mineral oil tax is intended to offset increased revenue the state collects through value-added tax (VAT) due to higher fuel prices. The MöSt reduction is initially set until the end of June but is subject to monthly review and could be extended through August. Furthermore, gas stations will be legally obligated to pass on any price decreases observed in international benchmarks to consumers. This measure aims to ensure that savings from international price drops are reflected at the pump for Austrian drivers. The government stated that these measures are being monitored and evaluated.