Austria- Profit margin cap and decrease of mineral oil tax for diesel and petrol in Austria

Due to amendments to the Austrian Price Act and Mineral Oil Tax Act published on March 31, 2026 (Federal Law Gazettes I No. 12/2026 and I No. 13/2026), the legal framework for the so-called “fuel price brake” came into effect on April 1, 2026.

The government is now authorized, under certain conditions, to cap profit margins on diesel and petrol for, producers, owners of mineral oil tax warehouses, registered consignees as well as petrol stations if significant price increases have caused economic disruption or a crisis and cannot be remedied by market-based measures. In addition, if a margin cap is imposed, the Minister of Finance must temporarily reduce the mineral oil tax for the respective month. This reduction is designed to offset additional VAT revenue generated by higher fuel prices, ensuring that the combined tax burden (mineral oil tax and VAT) remains unchanged compared to the reference date of February 27, 2026.

Based on these two legislative changes, two regulations were enacted as of April 1, 2026. One provides for a reduction in the price of diesel and petrol by EUR 0.05, while the other stipulates a reduction in the mineral oil tax on diesel and petrol by EUR 0.05. Both regulations are initially valid for a limited period until April 30, 2026.