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.

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

IN NUMBERS: What are the expenses Austrian families have in 2024?

Couples with children have expenses of over €4,000 a month in Austria, a new survey shows. With prices such as heating costs skyrocketing by 53 percent in 2024.

IN NUMBERS: What are the expenses Austrian families have in 2024?

Austrian families are facing higher living expenses, and an increased number of them are finding it challenging to repay their debts.

The monthly living expenses have increased by several hundred euros, as shown in the latest reference budget report from debt counselling services in Austria (Schuldnerberatungen), as reported by Vienna AT.

Current costs of living for Austrian families

According to the reference budget, couples with two children now face total monthly expenses exceeding €4,433, while single parents with two children face costs of €3,704, and single-person households costs of €1,730.

Compared to the 2023 reference budget, the monthly living costs for families have increased by several hundred euros. The reference budget for a household with one parent and two children is €300 more than last year.

Heating costs have seen the highest increase, skyrocketing 53 percent. Food prices are up 11 percent, and expenses for social and cultural activities have risen 10 percent. Rental costs have also jumped 8 percent.

Every month, a couple with two children (aged 7 and 14) now spends around €1,149 on food, €569 on entertainment, and €1,054 on rent and maintenance. They also budget about €212 for public transport, €285 for heating and electricity, and €117 for healthcare.

A single parent with two children (aged 7 to 14) spends about €1,021 on food monthly, €403 on entertainment, and €903 on rent and maintenance. Public transport costs the family around €121, heating and electricity about €248, and healthcare around €81.

Additionally, school-related expenses for two children cost parents around €156 per month.

People struggle to pay their debts

Johanna Steurer, project manager at ASB Schuldnerberatungen, the umbrella organisation for debt counselling services, has expressed concern over these rising costs, saying that more people are struggling at the end of the month due to the increased prices, reported Kleine Zeitung

New figures show that the high living costs have contributed to an increasing number of people becoming over-indebted, meaning they have more debt than they can manage.

“The high cost of living is becoming increasingly important as a reason for over-indebtedness,” Steurer said.

The reference budgets are calculated annually and show how much money is needed for different types of households to afford a decent life with a minimum of social and cultural participation.

The budgets assume a rented apartment and do not include regional cost differences or car expenses, which average nearly €900 monthly.

READ ALSO: How much does it cost to live in Vienna in 2024?

SHOW COMMENTS