Austria will increase its CO2 tax in January 2025, meaning higher costs for drivers and households that use oil or gas heating, as the government steps up efforts to curb emissions.
Currently set at €45 per tonne, the tax – introduced in October 2022 – will rise to €55 in the new year, an increase of roughly 20%. According to the Austrian Automobile, Motorcycle, and Touring Club (ÖAMTC), this will add 13.8 cents per litre to diesel and 12.5 cents to petrol, before VAT. The ÖAMTC has pointed out that VAT will also apply to this increase.
Climate Bonus to Be Increased
To help with rising costs, Austria’s climate bonus (Klimabonus), a payment meant to support residents in adopting greener energy options, will also go up. The bonus, which varies by region, paid out between €145 and €290 per person this year. However, as Austria’s economic and budgetary situation has worsened, the bonus has faced increased political debate.
Extension of Fuel Rebates for Farmers
Farmers will continue to benefit from a tax rebate on agricultural diesel until at least the end of 2025. This extension provides farmers with a 7-cent refund per litre and has been approved by parliament.
Fuel Prices See Moderate Rise
October saw a slight increase in fuel prices, with diesel averaging €1.513 per litre and petrol at €1.501, according to the ÖAMTC. Compared to September, diesel prices rose by nearly two cents, while petrol went up by 1.5 cents.
