Austria will expand its fuel price cap from October 2026, combining a mineral oil tax cut, limits on refinery and distributor margins, and a corresponding VAT reduction to lower fuel costs by more than EUR 0.12 per litre through 30 November 2026.
The Austrian government confirmed, on 23 September 2026, that it will extend and expand its fuel price cap beyond its September expiration. The coalition of ÖVP, SPÖ, and NEOS parties agreed to reactivate the measure at a significantly larger scale, with the new regulations taking effect in October 2026.
How much drivers will save
The price cap will reduce fuel costs by more than EUR 0.12 per litre. This reduction combines three components: a mineral oil tax cut of EUR 0.067 per litre (bringing diesel to the EU minimum rate), a margin cap of EUR 0.035 per litre on refinery and distributor markups, and a corresponding VAT reduction on the remaining amount.
The previous cap in September had delivered only approximately EUR 0.03 per litre in total savings, making the new measure roughly four times more substantial.
Why the expansion happened
Diesel prices in Austria have climbed sharply.
On 22 September 2026, diesel cost EUR 2.234 per litre, while premium gasoline reached EUR 1.934 per litre. Just days earlier, diesel hit an all-time high of EUR 2.26 per litre. These price spikes prompted the governing parties to skip their usual end-of-month negotiations and move directly to a larger relief package.
The margin cap, which had been suspended since spring, returns under the new arrangement. This mechanism requires refineries and fuel distributors to accept capped profit margins rather than set prices freely. The margin cap adjusts based on current wholesale prices paid by intermediaries.
The expanded price relief will remain in effect through 30 November 2026.
