Massive inflation – prices will rise sharply in 2025

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Good news for 2025? In short supply, at least when it comes to money. Because fuel, electricity, gas, vignettes, and rents will sometimes become considerably more expensive.

Increasing taxes and reducing expenditures—the direction of travel with the next federal government is already clear. However, it is also clear that 2025 will be a tough year for private household budgets. Here is an overview of what we are already facing.

Parking in Vienna: On 1 January, the city of Vienna raised short-term parking fees. Half an hour now costs 1.30 euros (previously 1.25 euros), and a full hour 2.60 euros (previously 2.50 euros). 90 minutes will cost 3.90 euros (previously 3.75 euros), 120 minutes 5.20 euros (previously 5.00 euros). The old parking tickets can be used until 30 June 2025, after which they are worthless. The ÖAMTC warns that exchanging them is impossible – even for an additional charge at the new rate.

Fuel: At the turn of the year, petrol and diesel became around three cents more expensive per liter due to the increase in the CO₂ levy to 55 euros (currently 45 euros) per tonne of carbon dioxide. Overall, the national CO₂ pricing will already cost motorists 15 cents (petrol) or 16.5 cents per litre of fuel, including VAT, in 2025.

Motor-related insurance tax (mVSt): The tax collected with the third-party liability premium will be €34.56 higher for (almost) all cars registered for the first time from 1 January 2025 than first-time registrations in 2024. According to the ÖAMTC, only very efficient or low-horsepower cars will see a smaller tax increase or none at all. E-cars will remain exempt from the motor-related insurance tax as before.

Standard consumption tax (NoVA): Due to further tightening of the calculation method, many new vehicles will have to pay a higher NoVA at the turn of the year. The tax, which depends on performance and emissions, is payable once the car is purchased. For individual hybrids, the majority of plug-in hybrids, and all-electric cars, no standard consumption tax is payable due to the low or complete absence of CO₂ emissions.

Vignette: The highway sticker will be 7.7 percent more expensive. Specifically, the annual car vignette now costs 103.80 euros (instead of 96.40 euros). The 2-month version will cost EUR 31.10 (instead of EUR 28.90), and the 10-day version will cost EUR 12.40 (instead of EUR 11.50). The 1-day vignette, which is only available digitally, now costs 9.30 euros (instead of 8.60 euros). Motorcyclists will also pay 7.7 percent more for their stickers.

Climate ticket: Because the legislator wants it that way, the prices for the climate ticket will be increased every year in line with the vignette. Therefore, the flat rate of public transport will also increase by 7.7 percent in 2025. This means the Austrian version will cost EUR 1,179.30 (previously EUR 1,095), while the discounted tickets for young people, seniors and specials will cost EUR 884.20 (previously EUR 821).

Rents: The legally regulated increases in guide value and category rents were suspended in 2024. However, due to the government’s rent cap adopted in 2023, they will be allowed to rise again from April 1, albeit by a maximum of five percent. Free rents are not subject to this regulation.

Electricity price brake: Government support for electricity customers has expired. According to the tariff portal durchblicker.at, this costs an average Austrian household an additional 435 euros per year. At the same time, the additional electricity cost subsidy for households with more than three people has been discontinued. In 2024, this amounted to EUR 105 each for the fourth or each additional household member.

Grid fees: The charges for using electricity and gas grids and their maintenance and expansion, some of which vary greatly from region to region, will be increased massively. A typical Austrian household with 3,500 kilowatt hours (kWh) of electricity or 15,000 kWh of gas consumption will incur additional annual costs averaging EUR 73 (electricity, +23.1 per cent) or EUR 60 (gas, +16.6 per cent).

Renewable energy subsidies: The flat-rate subsidy and subsidy contribution for financing renewables had been suspended in 2022 but are likely to be reinstated in 2025. Österreichs Energie, the lobby group for the Austrian electricity industry, expects an additional burden of around €100 per household.

Electricity tax: The tax was reduced to EUR 0.001 per kWh in 2022 as an anti-inflationary measure, thus virtually zero. At the turn of the year, 0.015 euros (or 1.5 cents) per kilowatt hour will be due again. This will cost a traditional domestic electricity household around 50 euros per year.

  • source: 5minuten.at/picture: pixabay.com
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