Austria’s lower house of parliament has approved draft legislation aimed at easing rising petrol costs, triggered by heightened tensions in the Gulf. Israeli and U.S. strikes on Iran, coupled with Iran’s threat to block shipping through the Strait of Hormuz, have pushed global oil prices higher, prompting the government to act.
The ruling three-party coalition plans to return extra revenue from higher fuel prices to consumers through tax cuts on petrol and diesel, alongside capping profit margins for refiners and petrol retailers. The government estimates these measures could initially lower fuel costs by around 10 euro cents per litre starting next month.
The opposition Greens supported the bill, giving the government the necessary two-thirds majority, but cautioned that the measures may be ineffective if retailers simply raise prices further. Greens leader Leonore Gewessler stressed that the government must improve the plans to genuinely bring fuel prices down.
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