The Austrian government is considering new measures to address rising petrol prices as pressure grows from political groups, businesses, and consumers. Officials are working on a possible “petrol price brake,” a mechanism that would allow the government to react quickly if fuel prices surge sharply.
The proposal is expected to be discussed at Wednesday’s cabinet meeting. However, political parties remain divided over how the plan should work.
The conservative Austrian People’s Party (ÖVP) supports returning any extra revenue from value-added tax to drivers through reductions in the mineral oil tax or the CO₂ tax. Adjusting the value-added tax itself is not possible because of regulations set by the European Union.
The Social Democratic Party of Austria (SPÖ), however, has proposed a different approach. The party wants the government to intervene directly in the market by introducing a temporary cap on petrol prices.
The liberal NEOS – The New Austria and Liberal Forum party has urged caution. While it supports measures that could help consumers, it warns against creating unnecessary bureaucracy. Negotiations among the parties have reportedly been difficult and could continue late into the night.
Finance Minister Markus Marterbauer rejected claims that the government is benefiting from higher fuel prices. He explained that increases in petrol prices mainly benefit oil producers rather than the state. Taxes such as the CO₂ tax and mineral oil tax are charged per liter, meaning government revenue only rises if more fuel is sold. The value-added tax adds about 1.3 cents per liter, generating roughly 10 million euros per month.
Economic experts have warned policymakers not to rush into major interventions. Martin Kocher, governor of the Oesterreichische Nationalbank, said governments should not create the impression that Austria can isolate itself from global price developments.
Meanwhile, business and social groups are urging action. The Austrian Federal Economic Chamber has suggested lowering the mineral oil tax, while Ingrid Korosec of the Austrian Senior Citizens’ Association warned that many pensioners are already struggling with rising living costs.
Although the governing parties agree that action may be needed if petrol prices continue to rise, they remain divided over the best way forward.
