European Fuel Tax Rates in 2023
Introduction
In light of the significant energy price surges experienced in 2022, several European nations implemented temporary fuel tax reductions to alleviate the burden on their citizens. However, as of 2023, most European countries have reverted to the pre-Russia-Ukraine war rates for gas and diesel taxes. The European Union (EU) mandates a minimum excise duty of €0.36 per liter ($1.55 per gallon) on gasoline.
Gasoline Excise Duties
A glance at today’s map reveals that only Bulgaria, Hungary, Romania, Malta, and Poland adhere to the minimum tax rate, while all other EU member states impose higher excise duties on gasoline. Hungary boasts the lowest gas tax in the EU, amounting to €0.29 per liter ($1.21 per gallon). Notably, Hungary’s rate is determined in its domestic currency, the forint, which results in a slightly lower average rate compared to the EU minimum after accounting for exchange rate fluctuations. The next lowest rates, after considering exchange rates, can be found in Bulgaria, Malta, and Romania, each imposing an excise duty of €0.36 per liter ($1.48 per gallon).
Diesel and Gas Taxes in Europe
Within the EU, the Netherlands enforces the highest gasoline tax at €0.79 per liter ($3.25 per gallon), followed by Italy at €0.73 per liter ($3.00 per gallon) and Finland at €0.72 per liter ($2.98 per gallon).
Around 30 percent of new passenger vehicles in the EU run on diesel. Consequently, many European consumers face excise duties on diesel fuel instead of gasoline. The EU imposes a slightly lower minimum excise duty of €0.33 per liter ($1.36 per gallon) on diesel.
Most EU countries levy a lower excise duty on diesel compared to gasoline. While the United Kingdom, no longer an EU member, and Belgium enforce the same rate on both fuel types, only Slovenia taxes diesel at a higher rate than unleaded gasoline. On average, the excise duty on gasoline in the EU amounts to €0.53 per liter ($2.19 per gallon), whereas the average duty on diesel stands at €0.43 per liter ($1.76 per gallon).
Among EU nations, the United Kingdom imposes the highest excise duty on diesel, reaching €0.62 per liter ($2.55 per gallon), trailed closely by Italy (€0.62 per liter or $2.54 per gallon) and Belgium (€0.60 per liter or $2.47 per gallon).
In terms of diesel fuel, Hungary boasts the lowest excise duties at €0.28 per liter ($1.16 per gallon), once again falling below the minimum rate due to exchange rate considerations. Following Hungary are Malta, Bulgaria, and Poland, each charging an excise duty of €0.33 per liter ($1.36 per gallon).
Value-Added Tax (VAT)
It’s important to note that all EU member states also impose a value-added tax (VAT) on gasoline and diesel. The excise amounts depicted in the map solely represent the excise taxes and do not include the VAT, which is calculated based on the sales value of these fuels.
Implications and Future Policy
Taxes on gasoline and diesel remain significant issues in European public policy. These taxes carry high visibility and are paid by a substantial number of Europeans. As the EU embarks on sweeping policy changes as part of its green transition, it is certain that fuel taxes will occupy a central role in any policy discussions.
Excise Duties on Gas and Diesel in the European Union, as of July 1, 2023
| Gas Tax | Diesel Tax | |||||
|---|---|---|---|---|---|---|
| Per Liter in EUR | Per Gallon in USD | Rank | Per Liter in EUR | Per Gallon in USD | Rank | |
| Austria (AT) | € 0.48 | $1.98 | 19 | € 0.40 | $1.63 | 16 |
| Belgium (BE) | € 0.60 | $2.47 | 9 | € 0.60 | $2.47 | 3 |
| Bulgaria (BG) | € 0.36 | $1.49 | 25 | € 0.33 | $1.36 | 25 |
| Croatia (HR) | € 0.41 | $1.67 | 23 | € 0.35 | $1.45 | 22 |
| Cyprus (CY) | € 0.43 | $1.77 | 22 | € 0.40 | $1.65 | 15 |
| Czech Republic (CZ) | € 0.52 | $2.15 | 14 | € 0.34 | $1.42 | 23 |
| Denmark (DK) | € 0.64 | $2.62 | 7 | € 0.44 | $1.82 | 9 |
| Estonia (EE) | € 0.56 | $2.32 | 11 | € 0.37 | $1.53 | 19 |
| Finland (FI) | € 0.72 | $2.98 | 3 | € 0.53 | $2.20 | 5 |
| France (FR) | € 0.68 | $2.81 | 5 | € 0.59 | $2.44 | 4 |
| Germany (DE) | € 0.67 | $2.76 | 6 | € 0.49 | $2.02 | 8 |
| Greece (GR) | € 0.70 | $2.88 | 4 | € 0.41 | $1.69 | 14 |
| Hungary (HU)** | € 0.29 | $1.21 | 28 | € 0.28 | $1.16 | 28 |
| Ireland (IE) | € 0.48 | $1.99 | 18 | € 0.43 | $1.75 | 10 |
| Italy (IT) | € 0.73 | $3.00 | 2 | € 0.62 | $2.54 | 2 |
| Latvia (LV) | € 0.51 | $2.09 | 16 | € 0.41 | $1.70 | 12 |
| Lithuania (LT) | € 0.47 | $1.92 | 21 | € 0.37 | $1.53 | 19 |
| Luxembourg (LU) | € 0.54 | $2.21 | 13 | € 0.41 | $1.70 | 13 |
| Malta (MT) | € 0.36 | $1.48 | 26 | € 0.33 | $1.36 | 26 |
| Netherlands (NL) | € 0.79 | $3.25 | 1 | € 0.52 | $2.12 | 6 |
| Poland (PL) | € 0.37 | $1.51 | 24 | € 0.33 | $1.37 | 24 |
| Portugal (PT) | € 0.55 | $2.27 | 12 | € 0.42 | $1.74 | 11 |
| Romania (RO) | € 0.36 | $1.48 | 26 | € 0.33 | $1.36 | 26 |
| Slovakia (SK) | € 0.51 | $2.11 | 15 | € 0.37 | $1.51 | 21 |
| Slovenia (SI) | € 0.47 | $1.94 | 20 | € 0.51 | $2.10 | 7 |
| Spain (ES) | € 0.50 | $2.07 | 17 | € 0.38 | $1.56 | 17 |
| Sweden (SE) | € 0.58 | $2.39 | 10 | € 0.38 | $1.54 | 18 |
| United Kingdom (GB) | € 0.62 | $2.55 | 8 | € 0.62 | $2.55 | 1 |
| Average | € 0.53 | $2.19 | € 0.43 | $1.76 | ||
| Minimum Rate | € 0.36 | $1.48 | € 0.33 | $1.36 | ||
| Notes: The excise duties apply to petroleum and diesel with a sulphur content of < 10 mg/kg, RON 95 (gas) and bioethanol content; if applicable, they include carbon taxes and surcharges. The excise duties were converted into USD using the July 2023 USD-EUR exchange rate (0.92) | ||||||
Source: https://taxfoundation.org/