Chamber of Commerce wants a temporary cut in the diesel excise duty

What happened and when

On 8 October 2026, ERR reported the Chamber of Commerce and Industry's position that a temporary cut in the diesel excise duty would help slow down overall price growth and reduce the risk of consumption turning downward again. According to the Chamber, fuel prices are linked to the prices of many other goods and services, since transport costs are passed on into final prices.

ERR also noted that the government is not currently planning to lower the excise duty. This means that the price of diesel and the related duty are expected to remain unchanged in the near term unless policy changes.

Why the excise duty affects the price so much

The price of fuel is made up of several components: the raw material cost, the excise duty and VAT. The excise duty is a fixed amount per litre, added to the price regardless of how high or low the world market price of crude oil is. If the duty were lowered, the fuel price would drop equally for all consumers, regardless of how much fuel they use.

It's important to note that this is currently only a proposal. Changing the excise duty rate would require amending the law, which the government is reportedly not planning at this time. So there's no reason to expect a fuel price drop from the excise duty in the near future.

A worked example: how the price per litre affects monthly costs

Suppose a driver covers an average of 1500 kilometres a month, and the car consumes 6 litres of diesel per 100 kilometres. That works out to 90 litres per month. At a price of 1.50 euros per litre, the monthly fuel cost is 135 euros (90 × 1.50 €).

If the price per litre rose to 1.60 euros, the monthly cost for the same mileage would increase to 144 euros (90 × 1.60 €), which is 9 euros more per month. Over a year, that difference adds up to 108 euros (9 € × 12 months). Conversely, if the excise duty cut led to a lower price per litre, the monthly cost would decrease by a similar amount.

You can calculate the actual fuel cost of your own vehicle and the impact of a price change using the fuel cost calculator, by entering your mileage, fuel consumption rate and price per litre. If you want to compare by what percentage your monthly cost would rise or fall with a specific price change, the percentage calculator can help with that.

Who this topic matters most to

Diesel prices directly affect those whose vehicle or work depends on diesel fuel:

• Transport and logistics companies, whose fuel costs make up a large share of total expenses and are often passed on into service prices.
• Farmers, who use diesel for machinery and tractors.
• Private drivers who own a diesel vehicle and travel a lot for work or over long distances.
• Businesses whose product or service prices include transport costs, since changes in fuel prices feed through into final prices with a delay.

What this means in the broader context of rising prices

The Chamber of Commerce and Industry's argument is that fuel prices affect the broader price level, since transport costs are an input for many goods and services. When fuel becomes more expensive, this is often passed on into the prices of food, goods and services, which in turn affects consumers' purchasing power and willingness to spend.

For now, since the government is not planning to lower the excise duty, fuel price developments will mainly depend on world market crude oil prices and the euro exchange rate. It's worth keeping a regular eye on your own fuel costs and, if needed, planning your budget so that price fluctuations don't come as a surprise.