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COST OF LIVING

Fuel to become even more expensive for drivers in Austria from October

On Saturday, the new carbon tax comes into effect, making petrol and diesel in Austria more expensive. Here's what you need to know.

Fuel to become even more expensive for drivers in Austria from October
(Photo by Dawn McDonald on Unsplash)

Austrian motor associations have already warned people to expect long lines at fuel stations ahead of October. This is because, from October 1st, the new CO2 tax will come into effect in the country, making fuel prices soar – again.

People filling up their tanks in Austria can expect the price of a litre of diesel (including VAT) to rise by € 0.099 and petrol by € 0.086, according to calculations made by the Austrian Institute of Economic Research (WIFO).

READ ALSO: ‘Mission 11’: Austrian government reveals tips on how to save energy and fuel

The difference in price increases is because the new CO2 tax of €30 per tonne has a more significant impact on diesel compared to petrol due to the higher CO2 content in diesel.

Fuel prices had already been on the rise since Russia’s invasion of Ukraine, as The Local reported. And the prices have risen more steeply in the Alpine country, which hasn’t put any price cap or lowered taxes, plus suffered with a damaged oil refinery in Lower Austria affecting supply.

The increases have contributed to growing inflation in Austria, which will reach double-digit in September, according to Statistic Austria.

READ ALSO: EXPLAINED: Why are fuel prices increasing faster in Austria than elsewhere in the EU?

The CO2 tax

The CO2 tax is part of Austria’s eco-social tax reform presented in 2021. CO2 emissions would be taxed at €30 per ton, making things like carbon-based fuel and heating more expensive in the country.

The reform brought in the “climate bonus” payment to compensate residents for the financial burden of the CO2 tax. The one-off bonus for Austrian residents would depend on the person’s place of residence and its connection to the public transport network.

This year, due to the rising inflation, the Klimabonus was set at €250 for everyone who lives in Austria, and a €250 “anti-inflation” payment was added to the one-off payout.

READ ALSO: Reader question: What should I do if I haven’t received Austrian government’s €500 payment?

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LIVING IN AUSTRIA

How much do you need to earn for a good life in Austria?

Austria is known as a country with a high standard of living, but it also comes with a high cost of living. Here’s an overview of what you can expect to earn in Austria.

How much do you need to earn for a good life in Austria?

As with most things in Austria, the question of ‘what is a good salary?’ is difficult to answer as the cost of living (and wages) can vary between states and cities.

For example, the east of Austria is typically much cheaper than the west for housing (with the exception of Vienna). And those living in cities often have easier – and cheaper – access to public transport when compared with people living in rural areas. 

READ ALSO: ‘Bad-tempered locals’: Vienna ranked the world’s ‘unfriendliest city’

Childcare is also something to consider with huge differences between Vienna, where there is access to heavily subsidised services, and places like Tyrol where childcare costs more.

To delve a bit deeper, we looked at the data to find out the average salary in Austria and how it differs between professions and locations.

What is the average salary in Austria?

In 2021, the average gross annual salary in Austria was €44,395, according to the latest data from Statistics Austria

However, in the latest survey by online job platform Step Stone, the average gross annual salary in Austria is €49,609.

The Step Stone survey then broke it down further by industry with those working in pharma earning the most at €60,504. This was followed by energy at €60,345, medical technology at €59,106 and banking at €58,711.

The industry with the lowest average annual salary is hotels/gastronomy at €37,546, followed by agriculture at €39,779 and tourism at €43,965.

FOR MEMBERS: REVEALED: The best and worst districts to live in Vienna (as voted for by you)

Occupation also plays a part with people working in management earning the most – on average €66,768. Consulting came second at €53,721.

And like many other European countries, the gender pay gap in Austria prevails. The average annual salary for a man is €52,633 and for a woman it is €44,330.

Furthermore, the top earning city in Austria is Bregenz in Vorarlberg with an average annual salary of €54,620. When comparing the west of Austria with the east, the median salary in Vorarlberg is €46,450, whereas in Burgenland it is just €39,100.

What is the average cost of living in Austria?

Many international residents will find everyday living costs in Austria to be expensive, especially for those that come from countries with a much lower cost of living.

Inflation has also been rising steadily in Austria throughout 2022, leading to some steep rises in prices for groceries, housing costs and energy.

READ MORE: EXPLAINED: 10 ways to save money on your groceries in Austria

However, the average cost of living varies across the country, depending on the location. For example, Vienna and Innsbruck in Tyrol are two of Austria’s most expensive cities, but more affordable places to live are Graz in Styria and Klagenfurt in Carinthia.

In Vienna, the average price for a one bedroom apartment in the city centre is €915, going up to €2,000 for a three bedroom apartment, according to Expat Arrivals.

Whereas in Graz, the average cost of a one bedroom city centre apartment is around €609, and a three bedroom apartment is €1,170.

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