Effect of fuel excise tax reduction on market prices

To mitigate the impact of Middle Eastern geopolitical tensions on energy prices, the government announced a reduction in fuel excise duty by 8.33 cents per litre, effective from April to June 2026. Prior to the implementation of the measure, fuel retail prices saw a cumulative increase of 6 to 9 cents per litre. This initial rise was characterized by a sharp 6-7 cent increase followed by incremental adjustments every few days. A typical household consuming 120 litres of fuel per month would have theoretically saved approximately 10 euros monthly, totaling 30 euros over the three-month period. However, analysts suggest that the preceding price hikes have effectively offset these anticipated consumer savings. The situation has prompted public scrutiny regarding the frequency of fuel supplier deliveries and the pricing strategies employed by companies. The gap between rising prices and slow price decreases remains a significant point of economic concern.