Oil price at 95 dollars, debate about fuel price cap is heating up again

The Oil prices on Wednesday morning because of the ongoing attacks USA on Iran continued to increase. The price for a barrel (159 liters) of the reference Brent variety from the North Sea rose by over 3 percent on the futures market to around $95. That’s it Brent oil at its highest level since the beginning of June.

In the second half of June and the beginning of July, the price of oil fell step by step to $70 due to hopes of a lasting ceasefire in the Middle East. But the hope came to nothing and the price of oil has risen sharply again since then. And with it the prices at the pumps.

On Tuesday, diesel cost an Austria-wide median of 1,989 euros per liter and gasoline 1,864 euros, according to data from E-Control. An extension of the fuel price brake is now being politically debated again. However, none of the three government parties have yet made a public commitment to this. There should be initial negotiations, coalition circles said S1.

The 10-cent fuel price brake introduced in April, which consisted of a reduction in mineral oil tax and a margin limit, was gradually slimmed down in the following months. After 1.7 cents per liter in June, the reduction in mineral oil tax (MÖSt) for July is now only 0.8 cents per liter as part of a monthly regulation. It has to be at the end of July ÖVP/SPÖ/NEOS-Government agree again on how high the fuel price relief contribution should be.

Current gasoline price just below March peak

In the week before the start of the Iran war in February, the Austrian median cost of gasoline was 1.52 euros per liter and diesel 1.57 euros. The median value is the price that lies exactly in the middle of all price reports received. At the peak of the price rally at the end of March, the nationwide median for gasoline was around 1.9 euros and for diesel around 2.2 euros. The current gasoline price of 1.86 euros per liter is just below the March peak.

The margin cap on fuel prices, which caused a lot of excitement in business circles, was lifted by the government at the beginning of June. It is still the case that gas stations must pass on price reductions in international price quotations by the end of August.

Ministry of Economic Affairs is monitoring the situation

The Trade Union Confederation (ÖGB) recently called for an “effective margin regulation” for diesel and heating oil. Economics Minister Wolfgang Hattmannsdorfer reacted cautiously to the request. The situation is monitored daily. The primary goal is security of supply, it said in a statement S1 and SN.

The fuel trade association is against renewed price intervention. “No, we don’t need that,” said managing director Hedwig Doloszeski SN. The small-scale domestic gas station market works very well, and Austria’s fuel prices in June were still in the bottom third compared to Europe. In the longer term, the fuel price brake could endanger small, independent gas stations and thus competition, she warned.