While fuel prices in Austria are skyrocketing – you now pay an average of over two euros for a liter of spirit – there is a legal maximum price of 1.30 a.m. per liter in neighboring Hungary. The result is a rush to Hungarian petrol stations.
At the same time, neighboring Bavaria, where a liter costs around 2.30 euros, is switching to Upper Austria. Almost 90 percent of the customers at a gas station in Schardenberg (Schärding district) currently come from Bavaria, as reported by ORF Upper Austria. Economic researchers warn that if a price cap were introduced in Austria like in Hungary, the problem would get worse. More on that in this article.
How to solve the problem
What could the government do about the high prices? When it comes to fuel, she could turn the screw on mineral oil tax (MÖSt) or value added tax (VAT). These two taxes help ensure that nearly half the price of fuel goes to the Treasury Secretary. If he does without the MÖSt for a limited period of time, that would save almost 40 cents per liter. There would be problems under EU law with the reduction in VAT. In addition, frequent drivers and richer people with cars with higher consumption would benefit more. However, many commuters rely on cars. They desperately need relief. One could also raise the official kilometer allowance and the commuter allowance. That would be less watering can.
- What can you do about gas prices? What if Austria gave up Russian gas? We answer more price questions in the OÖNplus report
deliberations on Sunday
Chancellor Karl Nehammer (ÖVP) invites you to a round table in the Federal Chancellery tomorrow. Measures to cushion the extremely high energy prices, which are now increasing as a result of the Ukraine war, are to be discussed. In addition to the head of government, representatives from economic research and the energy industry will take part in the discussion.
- More on the subject: Countries call for tax cuts ahead of energy summit
Onslaught with consequences
The rush to Hungarian gas stations has recently led to some having to ration fuel. Some gas stations have even run out of diesel, the ORF reported. The reason for the bottleneck is delivery difficulties, which forced the operators to drastically reduce the sales volume per car. Often only ten liters could be refueled per vehicle. But there is enough fuel, and the logistical problems are being worked on, according to the mineral oil company MOL, which supplies most of the gas stations in neighboring Hungary.
A report from ORF Burgenland:
Netherlands lowers petrol taxes
In response to the record prices at petrol stations, the Netherlands will reduce taxes on petrol and diesel by 21 percent. The government announced this on Friday. In addition, people with low incomes receive grants to compensate for the increased electricity and gas prices. According to the government, the overall package for balancing energy prices amounts to around 2.8 billion euros.
A liter of petrol currently costs an average of 2.50 euros in the Netherlands. Almost half of this is taxes and VAT. According to the government, from April 1 taxes will be reduced by around 17 cents per liter of petrol and 11 cents per liter of diesel.
In view of the inflation, the government wants to relieve people with low and middle incomes in particular. Citizens with a minimum income should each receive 800 euros in aid for the electricity and gas bill. Initially, 200 euros had been promised. Value added tax on gas and electricity will also be reduced from the current 21 to 9 percent. The government wants to help people with middle incomes and small businesses.
Ireland pays truck drivers 100 euros a week
The Irish government wants to temporarily pay truck drivers 100 euros a week to support them in the face of the sharp rise in fuel prices. This recognizes the role of companies in “keeping the country running,” said Irish Transport Minister Eamon Ryan on Friday, according to a report by the Irish Times. The measure will initially apply for eight weeks and will then be reviewed. The aim was to help the approximately 20,000 drivers in the industry given the “extraordinary circumstances” caused by the war in Ukraine, it said.
A few days ago, the Irish government announced that it would lower taxes on petrol and diesel. The tax on petrol is to be reduced by 20 cents and on diesel by 15 cents. The measure should apply until August 31.
Source: Nachrichten
