Fuel Costs: Austria Vs Germany — Who Wins?

The cost of living in Austria is 10% higher than in Germany, with fuel prices in both countries rising in recent years. In 2022, Austria saw a sharp increase in fuel prices, with petrol prices rising by 46 cents in two weeks, outpacing the rest of the EU. Germany also experienced a notable rise in diesel prices, the second highest in the EU after Austria. With the ongoing Ukraine crisis, fuel prices for gasoline, diesel, LPG, and natural gas have been steadily increasing. Motorists in both countries are feeling the impact of rising fuel costs, and it remains to be seen if prices will stabilize or continue to climb.

Austria's fuel prices are rising faster than in other EU countries

Austrias's fuel prices are rising faster than in other EU countries

Austria's fuel prices are surging faster than in any other European Union country, according to analysis by Verkehrsclub (VCÖ), Austria's Transport Association. In the two weeks leading up to March 14, 2022, petrol prices in the country rose by 46 cents, higher than anywhere else in the EU.

The VCÖ analysis also showed that a litre of Super on March 14 cost €1.987, a sharp increase of €0.46 compared to two weeks prior. When it comes to diesel, Austria had the second-highest price increase in the EU, with €0.50, just behind Germany's increase of €0.57.

There are several factors contributing to the rapid rise in fuel prices in Austria:

• International supply and demand: The war in Ukraine has decreased the supply of crude oil in international markets, while sanctions on oil-rich Russia have further exacerbated this shortage. At the same time, concerned countries are increasing their demand, driving up prices.
• Currency fluctuations: Global markets trade in US dollars, and with the euro losing value against the US dollar, the prices of fuel have increased compared to the previous year.
• Domestic factors: Domestic oil distributors in Austria are suspected of not passing on reductions in international prices to keep profits high. This means that when international prices drop, Austrian petrol stations do not lower their prices, increasing company margins.

The Austrian government is facing pressure to address the rising fuel prices and their impact on inflation and living standards. The Transport Association has called for an investigation into the rising prices and has made several suggestions to mitigate the issue:

• Reducing oil dependence in the transport sector
• Implementing policies to encourage energy-saving mobility, such as improving public transport
• Imposing a speed limit of 100km/h on motorways to save money
• Providing fuel subsidies and reducing taxes as short-term solutions

Austria's Transport Association called for an investigation into rising prices

Austria's Transport Association, the VCÖ, has called for an investigation into rising fuel prices, specifically the cost of Eurosuper petrol. The price of petrol in Austria rose by 46 cents in the two weeks leading up to March 14th, 2022, which was a sharper increase than anywhere else in the EU.

The VCÖ has requested that the Federal Competition Authority (BWB) investigates the rising prices, as they suspect that domestic oil distributors are keeping prices high when international prices drop, to maintain their profits.

The Green vice-chancellor, Werner Kogler, shared these suspicions on Twitter: "although the price of oil drops for the third day in a row, the prices at the stations remain the same... We will... contact the Federal Competition Authority, which could carry out an industry investigation as a first step. If things aren't going right and corporations make a deal out of the war, we have to intervene."

Austria's three major mineral oil companies could be taking advantage of the situation to fix prices, which would be easier with so few companies involved. The VCÖ has also suggested that the government needs to reduce the country's oil dependence on transport and improve public transport.

The war in Ukraine and sanctions on Russia have decreased supply

The war in Ukraine and sanctions on Russia have had a significant impact on energy prices and supply in Germany and Austria.

Germany has been under pressure to build new gas import infrastructure and diversify its sources to ensure its economy receives enough energy and avoid a deep recession. In the short term, the German government implemented measures such as decreasing or suspending federal taxes on gasoline and diesel. They also worked with state governments to do the same. Combined gains for consumers could amount to $0.50 per gallon.

Another option was to release more oil from strategic reserves into the market. However, as recent and previous actions have shown, this would only have a short-lived and limited impact on prices. What is released today will need to be replenished in the future.

In the long term, a more supportive approach to increasing domestic and international production could help. However, the key to the energy transition is in the hands of consumers. A major shift will need to happen on the consumer side of the equation. If EU citizens adjusted their driving habits to match those observed in Hungary, for example, the entire import of oil from Russia would not be needed. This would greatly improve energy security and significantly cut CO2 emissions.

Austria has struggled to define its official stance on the war in Ukraine due to historical and political factors. Before the embargo, Moscow earned upwards of 600 million euros per day in profits from exporting gas to Europe. While there were dips during the summer and a low of 17 percent in October, Austria has now returned to pre-invasion import levels.

Due to the war in Ukraine, energy prices have skyrocketed for German households. During the first half of 2025, households paid 11.87 cents per kilowatt-hour for natural gas on average, an increase of almost 74 percent compared to the second half of 2021. Household power prices were on average 41.02 cents per kilowatt-hour, a 25 percent increase.

Austria's oil distributors are suspected of keeping international price drops from consumers

Austria's fuel prices have been rising faster than in other countries in the European Union (EU). In March 2022, the price of Eurosuper petrol in Austria increased by €0.46 in just two weeks, the sharpest rise in the EU. This was followed by a further increase of €0.50 in the price of diesel, the second-highest increase in the EU after Germany.

These sudden price hikes have raised suspicions about the role of domestic oil distributors in the country. Austria's Transport Association (VCÖ) has pointed to a mix of processing and distribution costs, company profits, taxes, and government policies as potential factors contributing to the higher prices. However, one of the main concerns is that Austrian oil distributors may be taking advantage of international price drops to maintain their profits.

The suspicions are based on the observation that when international oil prices increase, domestic prices follow suit. However, when international prices drop, Austrian petrol stations often keep their prices the same, allowing oil companies to maintain higher profit margins. This practice, known as "keeping international price drops from consumers," has caught the attention of politicians and experts, who are calling for an industry-wide investigation.

Austria's Federal Competition Authority (BWB) has been urged to intervene and examine the pricing practices of the country's three major mineral oil companies. The Green vice-chancellor, Werner Kogler, expressed his concerns on Twitter, stating, "There is a suspicion that a few oil companies are earning big money at the expense of the people." He further emphasized that the potential profits made through this practice could amount to billions, justifying the need for scrutiny and potential regulatory action.

Germany has cheaper fuel prices than Austria

In March 2022, the price of Eurosuper petrol in Austria rose by €0.46 in just two weeks. This was the sharpest increase in the EU, according to Austria's Transport Association, the VCÖ. The VCÖ analysis also revealed that a litre of Super on March 14th cost €1.987, a significant increase from just two weeks prior.

Germany, on the other hand, experienced a slightly lower increase in diesel prices during the same period, with a rise of €0.57, compared to Austria's €0.50. This difference in fuel prices between the two countries can be attributed to various factors, including processing and distribution costs, company profits, taxes, and government policies.

It is worth noting that fuel prices are influenced by a combination of factors, including the price of crude oil, refinery costs, distribution expenses, profits, taxes, and government intervention. The law of supply and demand also plays a crucial role in determining fuel prices, and global events such as the Ukraine-Russia conflict can significantly impact supply and, consequently, prices.

Additionally, the strength of a country's currency against the US dollar can affect fuel prices, as global markets trade in US dollars. A weaker currency, such as the euro losing value against the dollar, can lead to higher fuel prices compared to the previous year.

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