Austria’s government cuts fuel prices by 12.2 cents per liter in October and November

The Austrian government has agreed to a total reduction of 12.2 cents per liter for petrol and diesel in October and November 2026, following a rise in fuel prices caused by international tensions and the situation in the Middle East.

The measure will have two components: a temporary reduction in the petroleum products tax and limits on the margins of companies in the fuel industry. The pre-tax price reduction will also lower the VAT paid by consumers. For a tank of approximately 40 liters, the savings could reach nearly five euros.

The intervention is significantly stronger than the one applied in September, when the reduction was only 1.9 cents per liter. Chancellor Christian Stocker said the authorities were responding in this way to the latest price increases, while Vice Chancellor Andreas Babler emphasized that the profits of oil companies would be limited.

The government has not yet decided whether the measure will be extended into December. The mechanism is based on legislation adopted by Parliament in March 2026 and can be used temporarily during periods of unusually steep price increases. Oversight of the margins falls to the regulatory authority E-Control, and the instrument expires at the end of 2026.