The Federal Cartel Office reports a positive outcome from the fuel tax subsidy: Approximately 80% of the tax reduction has been passed on to consumers, with a price gap of nearly four cents.
According to the Federal Cartel Office, the fuel tax subsidy has largely reached drivers. The reduction in energy tax during May and June resulted in 82.6% being passed on to diesel users and 77.8% to E5 gasoline consumers. This tax relief was implemented in response to rapidly rising gas station prices following the outbreak of the Iran crisis.
Originally, the state-granted rebate amounted to nearly 17 cents per liter. On average, 2.9 cents for diesel and 3.7 cents for gasoline were not passed on to motorists.
Economists Criticize Fuel Tax Subsidy
“The tax relief was not fully passed on, but predominantly so,” stated Andreas Mundt, the president of the Cartel Office. After the subsidy ended on July 1, fuel prices rose by the expected 17 to 19 cents, remaining within the anticipated range.
The fuel tax subsidy cost the government approximately €1.6 billion and faced criticism from economists for failing to effectively support low-income individuals.
Refueling Before 12:00 PM
The Cartel Office positively assessed the so-called 12 PM rule. Since its introduction, gas stations are allowed to raise prices only once daily at noon, but can lower them anytime, promoting greater transparency.
As a result, the number of daily price changes has significantly decreased—from as many as 50 to an average of around eight. According to Mundt, refueling just before noon is typically the cheapest option.
In the second quarter of 2026, the Cartel Office reported that price increases occurred in just about 2% of cases at other times of the day. Local authorities need to intervene against violations.
