Read news from:
Austria
SHARE
COPY LINK

COST OF LIVING

Fuel to become even more expensive for drivers in Austria from October

On Saturday, the new carbon tax comes into effect, making petrol and diesel in Austria more expensive. Here's what you need to know.

Published: 30 September 2022 17:14 CEST
Fuel to become even more expensive for drivers in Austria from October
(Photo by Dawn McDonald on Unsplash)

Austrian motor associations have already warned people to expect long lines at fuel stations ahead of October. This is because, from October 1st, the new CO2 tax will come into effect in the country, making fuel prices soar – again.

People filling up their tanks in Austria can expect the price of a litre of diesel (including VAT) to rise by € 0.099 and petrol by € 0.086, according to calculations made by the Austrian Institute of Economic Research (WIFO).

READ ALSO: ‘Mission 11’: Austrian government reveals tips on how to save energy and fuel

The difference in price increases is because the new CO2 tax of €30 per tonne has a more significant impact on diesel compared to petrol due to the higher CO2 content in diesel.

Fuel prices had already been on the rise since Russia’s invasion of Ukraine, as The Local reported. And the prices have risen more steeply in the Alpine country, which hasn’t put any price cap or lowered taxes, plus suffered with a damaged oil refinery in Lower Austria affecting supply.

The increases have contributed to growing inflation in Austria, which will reach double-digit in September, according to Statistic Austria.

READ ALSO: EXPLAINED: Why are fuel prices increasing faster in Austria than elsewhere in the EU?

The CO2 tax

The CO2 tax is part of Austria’s eco-social tax reform presented in 2021. CO2 emissions would be taxed at €30 per ton, making things like carbon-based fuel and heating more expensive in the country.

The reform brought in the “climate bonus” payment to compensate residents for the financial burden of the CO2 tax. The one-off bonus for Austrian residents would depend on the person’s place of residence and its connection to the public transport network.

This year, due to the rising inflation, the Klimabonus was set at €250 for everyone who lives in Austria, and a €250 “anti-inflation” payment was added to the one-off payout.

READ ALSO: Reader question: What should I do if I haven’t received Austrian government’s €500 payment?

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

COST OF LIVING

Austria to hike amount to be paid out for 2024 ‘Klimabonus’ payment

Austrian authorities will soon start sending out the so-called Klimabonus payment, and it will be a higher amount than last year.

Published: 15 May 2024 14:57 CEST
Austria to hike amount to be paid out for 2024 'Klimabonus' payment

The Klimabonus or climate bonus is a part of Austria’s eco-social tax reform, a set of measures to promote climate protection.

One such action includes a tax on CO2 emissions, which increases fuel prices and affects Austrian drivers. The annual Klimabonus payment aims to offset this expense. 

The payment of this year’s climate bonus will see an increase due to the higher CO2 pricing, and so will range between €145 and €290. Last year, the bonuses varied from €110 to €220. The new figures were announced by the Austrian government after the meeting of the Council of Ministers on Wednesday, May 15th, reported ORF.

Payments will be made after the summer

You will receive the bonus if you have had your main residence in Austria registered for more than six months.

As during the precious years, the payment will be made after the summer – by bank transfers and postal deliveries via RSa letter. If you received the payment to your bank account last years, you should update your account details to finanzonline.at to ensure that everything is in order.

READ ALSO: Vienna reveals new plan for how to move away from gas heating

How much will you get?

The idea is that people who live in cities where they can rely on eco-friendly public transportation will receive a lower portion of the bonus. Those who instead have limited access to public transportation and need to pay higher costs, such as for using their car for travelling, will receive a larger portion of the bonus.

The government has created four different categories which decide how much residents in different locations will receive.

  • Category 1: Urban centres with very good infrastructure and excellent public transport facilities, such as Vienna. In Category 1 regions, there is no additional regional compensation, so the payment remains at the base amount (€145 per person).
  • Category 2: Urban centres with good infrastructure and solid public transport facilities, including cities like Graz, Salzburg, Klagenfurt, or St. Pölten. In Category 2 regions, the regional compensation is 33 percent of the base amount (€195 per person).
  • Category 3: Urban centres and surrounding areas with basic public transport facilities or good basic public transport options. Examples of category three regions are Groß-Enzersdorf, Wolfsberg, or Mittersill. In Category 3 regions, the regional compensation is 66 percent of the base amount (€245 per person).
  • Category 4: Rural communities and communities with only basic public transport facilities. Examples of category four regions include Mariazell, Werfen, and Sölden. In Category 4 regions, the regional compensation is 100 percent of the base amount (€290 per person).

READ MORE: Austria climate activist aims to take fight to Brussels

SHOW COMMENTS