Austrian renewable transport law could raise diesel prices by up to 95 cents per litre

Economica’s analysis, presented to the Austrian chamber of commerce, predicts that the Renewable Energy Transport Act will lift diesel prices by up to 95 cents per litre and gasoline by 86 cents in 2035, relative to the EU reference pathway. The draft law intends to achieve a 65% renewable share in transport by 2035, contrasting with the EU’s RED III requirement of at least 29% by 2030. Chamber secretary Jochen Danninger criticises the “national special path” as excessive and likely to drive up energy prices.

The study also notes that the higher costs would disproportionately affect lower-income households, with the bottom income quintile bearing a larger share of the burden. Economica forecasts a slower uptake of electric vehicles, estimating only a quarter of the fleet will be fully electric by 2035. The chamber has asked policymakers to drop the over-fulfilment, keep the system technology-neutral, and protect supply security and competitiveness.