The good news: this year fuel was on average two to four cents per liter cheaper than in 2023. But that’s where the relief ends. From January, refueling costs have increased and insurance tax and consumption tax will also be increased. In any case, the kilometer allowance will be increased.
In concrete terms, thanks to lower oil prices, petrol was on average two cents cheaper this year at 1,569 euros per liter (a decrease of one percent) than in 2023, and diesel at 1,596 euros was even four cents cheaper (three percent), the ÖAMTC determined. As you can see, for the third year in a row, diesel drivers tend to pay more than those who fill up at Eurosuper.
But now a new wave of inflation is hitting car owners. Three important cost items accelerate with the turn of the year. Firstly, the CO₂ tax will increase from 45 euros to 55 euros per ton of greenhouse gas as of January 1. Converted, fuel at the pump becomes approximately three cents per liter more expensive. Including VAT, the CO₂ part of the price is 15 cents for petrol or 16.5 cents for diesel. In total, the Tax Authorities now collect up to 57 percent tax on every liter of fuel!
If the next cabinet abolishes the regional climate bonus, which is intended to compensate for the CO₂ tax, in order to restructure the budget, this would even amount to an additional tax increase, warns ÖAMTC expert Martin Grasslober.
Save up to four cents when filling up on Sundays
If you fill up your car during the weekend, you can save some money, the motoring club advises. Sundays are usually particularly cheap, with savings of up to four cents per liter compared to the middle of the week this year. But you don’t have to get up extra early, because prices at the pumps are only allowed to drop from Sunday afternoon to Monday noon. Only then can the gas stations increase them again.
Secondly, most combustion engine vehicles registered for the first time from January 1 will be subject to higher motor insurance tax. This is automatically collected together with the premium for the vehicle’s liability insurance and makes new vehicles on average 35 euros more expensive per year, the ÖAMTC calculates. Only very fuel-efficient or low-performance new cars are likely to get away with little to no profit. Important: Nothing will change for cars that are already registered! Electric vehicles are still fully exempt from motor vehicle tax.
Third, the standard consumption tax (NoVA), which only needs to be paid once upon purchase, will increase for many models. CO₂ emissions are also crucial here. Due to the complicated calculation methodology, it is possible that more NoVA is not only made for ‘fuel guzzlers’ but also for very economical cars. NoVA will only be completely eliminated for electric cars and some hybrid and most plug-in hybrid cars.
The official mileage allowance will be increased
As a small consolation: after many years, at least the official mileage allowance will be increased. If you are traveling for business, the standard rate is 50 cents per kilometer driven. From January it no longer matters whether you use the car, motorcycle, motorbike or bicycle (at a distance of one kilometer). Passengers may be charged 15 cents (previously 5 cents). The road tax discount will also be slightly increased to 487 euros per year. This is offset against income tax and is usually taken directly into account by the employer when paying employees wages.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
