Austrian fuel stays cheaper than Germany despite upcoming German tax cut

Germany will cut fuel taxes by 17 cents per litre from October through the end of the year, yet Austrian gasoline and diesel are projected to stay cheaper, E-Control analyst Johannes Mayer told APA. The reduction will shrink the price differential, but Austria’s market dynamics—particularly in Tirol, where transport costs are higher and consumers accept higher prices—will keep its stations more expensive than most Austrian regions, with Tirol residents paying roughly 6 cents above the national average.

Mayer expects German “tank tourism” to decline as the price advantage narrows. Tirol governor Anton Mattle rejected Mayer’s explanation, calling it an affront and alleging market distortion, and announced legal action and a demand for a thorough price investigation. Meanwhile, E-Control’s monitoring shows current pump prices are well below the legally allowed reference levels, reflecting strong competition from small retailers that undercut larger chains such as OMV, BP and Eni. Mayer advises against reinstating a 5-cent margin cap, suggesting any limit be no more than 2.5 cents and short-lived to avoid harming competition.