Austria: Rising Fuel Prices & Government Response to Iran Conflict
Political Debate Surrounds Measures to Combat Rising Fuel Prices in Austria
As in the rest of Europe, Austria is experiencing a political debate regarding potential measures to address the significant increase in fuel prices at the pump, driven by the ongoing conflict in Iran. Neighboring countries like Croatia, Hungary, and Slovenia have already implemented measures to mitigate the impact on consumers.
The escalating conflict in the Middle East has led to a noticeable surge in oil prices, which has directly translated into higher prices for motorists in Austria. Criticism of fuel pricing practices is coming from all sides – politicians, interest groups, and the business sector alike. Last week, the Ministry of Economy announced a review of fuel prices, signaling the government’s attention to the issue.
As of Monday, March 9, 2026, the average price for a liter of Super 95 gasoline was €1.67, while diesel averaged €1.85 per liter. Those seeking the cheapest fuel stations across the country can find a list here.
Stocker Advocates for Temporary Tax Reduction
Federal Chancellor Christian Stocker (ÖVP) has voiced support for a temporary reduction in taxes, stating, “Crisis profits at the expense of drivers – and therefore people and businesses – must not be allowed to happen.” He likewise argued that the state should not benefit from the crisis, profiting from the hardship faced by those struggling with rising prices.
Vice-Chancellor Andreas Babler (SPÖ) proposes a cap on the profit margins of fuel stations and refineries. He believes this “would be an important step towards affordable fuel prices,” and emphasized a commitment to avoid repeating the mistakes of previous administrations by intervening in pricing.
FPÖ party leader Herbert Kickl has repeatedly called on the federal government to take immediate action, demanding the abolition of the CO₂ tax and a substantial reduction in value-added tax and mineral oil tax on diesel and gasoline. He accused the current coalition government of “standing idly by” while citizens are financially burdened at the gas pump.
A major meeting of finance ministers is scheduled for Tuesday in Brussels, where energy prices will undoubtedly be a key topic. Austrian Finance Minister Markus Marterbauer (SPÖ) has suggested direct intervention in prices or a limitation of margins as potential solutions.
Measures in Croatia, Hungary, and Slovenia
Hungary and Croatia were the first EU countries to introduce price caps on fuel on Monday. Starting Tuesday, Croatia will have a price ceiling of €1.55 per liter for diesel and €1.50 per liter for gasoline. In Hungary, the price cap applies only to vehicles registered in the country, and state reserves are being released.
Discussions regarding measures are also underway in other neighboring countries. In Germany, diesel currently costs an average of over €2.23 per liter, and Super E10 over €2.09. German Economics Minister Katherina Reiche (CDU) has announced a cartel investigation into prices at German gas stations, while Finance Minister Lars Klingbeil (SPD) has called for consequences for mineral oil companies.
The Slovenian government has stated that it has mitigated the pass-through of international price increases to domestic retail prices by reducing excise duties. As of Tuesday, gasoline costs €1.46 per liter, diesel €1.52 per liter, and heating oil €1.15 per liter in Slovenia.
On the eleventh day of US-Israeli air strikes against Iran, US President Donald Trump stated that Operation “Epic Rage” is “on track” and the war is “virtually over.” However, he does not expect the war to end this week. The conflict’s impact on global oil supply is a key driver of the price increases, as the Strait of Hormuz, a crucial route for oil tankers, is currently disrupted.
Further Information:
- WIFO sees no reason for state intervention
- Ministry of Economy reviews fuel price developments
- ARBÖ calls for fuel price cap following conflict in the Middle East
- Fuel prices have risen sharply in a short period of time