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Austria’s coalition is heading into another tense showdown as the month draws to a close — and with it, half of the country’s fuel price brake is scheduled to expire. Without a last‑minute political compromise, drivers will face noticeably higher prices at the pump starting Monday.
A Political Standoff as Prices Rise Again
The fuel price brake, introduced to cushion consumers from volatile energy markets, combines a temporary reduction of the mineral oil tax with a cap on refinery profit margins. Together, these measures currently save motorists roughly five euros per tankful.
But the regulation is only valid until the end of each month — and this time, the dispute over an extension is sharper than ever.
- ÖVP and Neos want the margin cap on oil companies to end as planned.
- SPÖ insists the measure must continue, arguing that high prices justify ongoing intervention.
If no agreement is reached, fuel will become about five cents per liter more expensive starting June 1 — roughly €2.50 more for a 50‑liter tank.
Prices Already Climbing
According to E‑Control, median prices on May 25 stood at:
- Diesel: €1.858 per liter
- Super: €1.763 per liter
Both are slightly above April levels. SPÖ parliamentary leader Philip Kucher argues that higher prices should trigger stronger — not weaker — consumer protection tools. “If prices are higher than a month ago, our instruments shouldn’t become blunter,” he told Heute.
Kucher warns that ending the margin cap would benefit “crisis profiteers” rather than commuters.
Government Signals No Extension
Energy Minister Wolfgang Hattmannsdorfer has so far declined to reopen negotiations, pointing to earlier statements that the margin cap should expire at the end of May. Market interventions, he argues, must remain short‑term and exceptional to avoid undermining investment security.
Neos energy spokesperson Karin Doppelbauer also rejects an extension, claiming the cap harms small filling stations and distorts competition. The SPÖ disputes this, saying no evidence supports such concerns.
What Happens on June 1?
As things stand now, the political deadlock means:
- The margin cap expires.
- The mineral oil tax reduction remains.
- Fuel prices rise by around 5 cents per liter.
Unless the coalition reaches a last‑minute compromise, drivers will feel the increase immediately when the new month begins.
- source: heute.at/picture: pixabay.com
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