Cheap Austrian tractor diesel under discussion again

In Austria, the cheap agricultural diesel introduced this year is again in danger of being called into question by a new national energy plan. This plan proposes to phase out all polluting subsidies for fossil fuels.

This would mainly affect tax benefits for commuter traffic and diesel types for freight and goods transport.

Scientific research has shown that Austria spends several billion euros annually on tax breaks for commuting, which promote driving. The reduction for business goods and freight transport by means of cheaper diesel fuel in particular contributes to CO2 emissions.

Austria's national energy and climate plan aims to drastically reduce greenhouse gas emissions and accelerate the transition to renewable energy sources. Austria is one of the last EU countries to submit such a transition plan to Brussels.

The agricultural diesel package includes a total refund of 37.5 cents per liter of diesel for 2024. Austrian agricultural organizations point out that they have already significantly reduced their CO2 emissions. “Since 1990, we have been able to save more than 16 percent of CO2 emissions in the agricultural sector, while other sectors still have to do their homework.”

In addition, the Austrian plan also focuses on increasing energy efficiency and boosting the production of renewable energy, such as biomass, which has already become an important energy carrier in the country. In this respect, the country is ahead of many other EU countries.

It is not yet certain whether the new energy plan of Environment Minister Leonore Gewessler (Greens) will be implemented in its current form. The current proposal does not include a task assignment per business sector and no penalty and fine provisions.

This means that the CO2 plan can still be used in the campaign for the parliamentary elections at the end of September. There are various issues in the field of agriculture, environment and nature on which the political parties differ greatly in opinion.

ÖVP Minister Totschnig has already said that politicians should keep their hands off 'his' cheap agricultural diesel, while the Greens and SPÖ emphasise that Austria will face EU fines if it does too little to combat CO2 emissions.