See previous versions of this post

Diesel and Gas Taxes in Europe, 2025

5 min readBy: Adam Hoffer, Jacob Macumber-Rosin

Fuel taxes continue to be a central policy consideration for European countries amid geopolitical conflicts, increased emphasis on environmental policy, and economic conditions experienced by average consumers. The European Union requires Member States to levy a minimum excise duty of €0.359 per liter ($1.60 per gallon) on petrol (gasoline).

The market for diesel vehicles in the EU has been steadily declining, but they still account for almost 10 percent of new car registrations. Some European consumers, then, face excise duties on diesel instead of gas. The minimum excise duty required by the EU is slightly less for diesel at €0.330 per liter ($1.47 per gallon).

Only Malta sticks to the minimum taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. on gasoline, while all other EU countries levy higher excise duties. At the €0.359 per liter minimum, Malta has the lowest gas taxA gas tax is commonly used to describe the variety of taxes levied on gasoline at both the federal and state levels, to provide funds for highway repair and maintenance, as well as for other government infrastructure projects. These taxes are levied in a few ways, including per-gallon excise taxes, excise taxes imposed on wholesalers, and general sales taxes that apply to the purchase of gasoline., followed by Bulgaria at €0.363 per liter ($1.62 per gallon) and Hungary at €0.399 per liter ($1.78 per gallon).

The Netherlands has the highest gas tax in the EU at €0.789 per liter ($3.53 per gallon), followed by Italy at €0.713 per liter ($3.19 per gallon) and Denmark at €0.711 per liter ($3.18 per gallon).

 

Data compiled by Adam Hoffer and Jacob Macumber-Rosin

Changes from 2024

  • Lithuania increased the tax on gasoline by €0.05 per liter and the tax on diesel by €0.11 per liter.
  • Denmark increased the tax on diesel by €0.089 per liter.
  • Ireland increased the tax on gasoline by €0.08 per liter and the tax on diesel by €0.07 per liter.
  • Slovenia increased the tax on gasoline by €0.07 per liter.
  • Sweden reduced the tax on gasoline by €0.07 per liter.
  • Portugal increased the tax on gasoline and the tax on diesel by €0.06 per liter.
  • Croatia increased the tax on gasoline by €0.056 per liter.
  • Slovenia increased the tax on diesel by €0.05 per liter.
  • The taxes in many other countries changed by less than €0.05 per liter, either by legislation or by changes in currency conversions.

Most EU countries levy a lower excise duty on diesel than on gas. Belgium and the United Kingdom, which is no longer a member of the EU, levy the same rate on the two fuels. The average excise duty on gasoline across the EU is €0.558 per liter ($2.50 per gallon), while the average excise duty on diesel is €0.458 per liter ($2.05 per gallon).

Italy levies the highest excise duty on diesel at €0.632 per liter ($2.83 per gallon), followed by the United Kingdom at €0.616 per liter ($2.75 per gallon) and Belgium at €0.600 per liter ($2.68 per gallon).

The lowest excise duties are levied by Bulgaria and Malta at the EU minimum of €0.330 per liter ($1.47 per gallon), then by Sweden at €0.350 per liter ($1.56 per gallon).

These figures include environmental taxes levied on fuel in the reported excise duty, where those taxes are applied with an ad quantum per unit rate. At least seven EU Member States levy a carbon, energy, or other environmental tax included in their total excise duty.

To compare across the Atlantic, the EU minimum excise duty on gasoline ($1.60 per gallon) is greater than the highest gas tax in the US, which is approximately $1.255 per gallon in California (combining federal and state taxes, including environmental burdens).

All EU Member States also levy an additional value-added tax (VAT) on the sale of gasoline and diesel fuel. The excise duties from the data are levied before the VAT is applied. These taxes combine to create a relatively high burden on consumers and European economies.

Taxes on gasoline and diesel continue to be prominent policy issues throughout Europe. As the EU enacts sweeping changes for its green transition to become climate neutral by 2050, fuel taxes are likely to remain a crucial aspect of policy discussions.

Stay informed on the tax policies impacting you.

Subscribe to get insights from our trusted experts delivered straight to your inbox.

Subscribe
Share this article

Previous Versions