How European Countries Are Trying to Keep Fuel Costs Down — Spain, Germany, France and More

The EU Commissioner's Message: Cut Taxes Now

With the Middle East war upending global energy markets and sending fuel and gas prices surging, consumers across Europe are paying the price at the pump. The EU's energy commissioner Dan Jorgensen has made his message to member states clear: do whatever you can to bring costs down.

"If you are at all able to lower taxes on energy, especially on electricity, there is a huge potential" to cut bills, Jorgensen told a press conference at the European Parliament in Strasbourg. Faced with that pressure from Brussels and domestic consumers, several European governments have moved to intervene — through tax cuts, subsidies, price controls, and reserve releases. Here is where each country stands.

Spain

Spain has been among the most active responders. The Sánchez government's €5 billion emergency package includes:

• VAT cuts on gas and fuel — bringing pump prices down by as much as €0.30 per litre, equivalent to approximately €20 per tank for the average car
• A direct subsidy of €0.20 per litre for transport operators, farmers, ranchers and fishermen — sectors hit hardest by rising fuel costs
• Lower electricity taxes to cushion household energy bills

Spain's petrol prices surged from €1.48 per litre on 28 February — when the US-Israeli strikes on Iran began — to a peak of €1.78 before the package took effect, bringing prices back to around €1.56 per litre.

Germany

German MPs have passed new fuel price rules designed to prevent petrol stations from exploiting volatile market conditions. Under the new regulation, petrol stations may only increase prices once per day, at a pre-established time — limiting opportunistic price spikes within a single day.

The measures still require sign-off by the Bundesrat (the upper house), but if approved they would come into force by April and remain in place for one year before review. Germany has also announced plans to release parts of its strategic oil reserves as part of a coordinated move with the International Energy Agency — though officials caution this is unlikely to produce a noticeable effect at German forecourts.

France

France has faced particularly acute pressure on diesel supplies. In response, the French government has taken two notable steps:

• Temporarily authorised the sale of fuel that does not meet usual standards — a short-term measure to prevent diesel shortages
• Deployed tax inspectors to make spot checks at fuel stations, with dozens already fined for abusive pricing practices

France's haulage industry has said the measures do not go far enough, and protests and roadblocks have been announced. The situation remains tense.

Norway

Norway's parliament, the Storting, voted on 26 March to remove the road usage tax (veibruksavgift) on petrol and diesel entirely — effective from 1 April until 1 September 2026.

The road tax currently stands at 3.77 kroner per litre for petrol and 2.28 kroner per litre for diesel. Because Norway's 25% VAT is calculated on top of the road tax, scrapping the tax also removes the VAT charged on it — delivering a larger saving than the headline figures suggest:

• Petrol drivers should see prices fall by around 4.71 kroner per litre (tax cut of 3.77 kr + VAT reduction of 0.94 kr)
• Diesel drivers should see prices fall by around 2.85 kroner per litre (tax cut of 2.28 kr + VAT reduction of 0.57 kr)

Austria

Austria's government has agreed on a temporary package combining a tax cut with a margin control mechanism:

• The mineral oil tax on petrol and diesel is initially being reduced by 5 cents per litre
• A legal mechanism has been activated to limit operating margins across the fuel value chain during the declared crisis period — preventing suppliers and retailers from profiting disproportionately from market volatility

Combined, the government says the relief should amount to around 10 cents per litre — a saving of approximately €5 on an average tank fill.

Italy

Italy has gone further than most, with Prime Minister Giorgia Meloni announcing an emergency decree that cuts excise duties on fuel by around 25 cents per litre. Consumer group Codacons calculates the actual saving at the pump — once VAT is included — at closer to 30 cents per litre, or roughly €15 on a 50-litre tank — enough to bring diesel back towards pre-conflict price levels.

Italy has also moved to enforce pass-through to consumers: oil companies must now report daily recommended prices to the ministry or face fines of 0.1% of turnover. The Guardia di Finanza has launched checks following reports that some petrol stations had not yet lowered prices in line with the excise cut.

Sweden

Sweden's government and the Sweden Democrats are proposing a temporary tax reduction on petrol and diesel, with the change scheduled to come into force on 1 May and run through to the end of September. The fuel tax cut is estimated to cost 1.5 billion kronor.

In addition, Sweden is proposing a new electricity and gas subsidy costing 2.4 billion kronor, which will reimburse households for high energy costs incurred in January and February.

The Bigger Picture

The patchwork of responses across Europe reflects both the scale of the energy shock and the differing political calculations of individual governments. What is notable is the breadth of the response: countries spanning the political spectrum — from Spain's left-wing coalition to Italy's right-wing government to Norway's centre-left — have all concluded that some form of state intervention to cushion fuel prices is necessary.

Whether these measures are sufficient depends heavily on how long the conflict continues and whether oil and gas prices stabilise or rise further. The EU Commissioner's message — cut taxes if you can — suggests that Brussels is preparing for the possibility that the current emergency will not be a short-term disruption but a sustained challenge requiring prolonged government action.

This article is based on reporting from The Local, published March 28, 2026, with additional reporting by AFP. This article is for informational purposes only.