Will Switzerland introduce German-style fuel tax cut?

As European countries begin introducing measures to help drivers amid rising fuel prices, the Swiss government is divided over whether fuel tax cuts should be introduced in Switzerland.

SVP calls for action against fuel prices

With the price of fuel still rising and electric vehicle sales surging due to the war in the Middle East, the Swiss government is divided over whether or not to introduce measures to help ease the financial burden on drivers.

The SVP is calling for tax on fuel to be abolished, or at least reduced, as it “represents a significant component of the final price of fuels and therefore offers a direct lever for rapid relief”, reports 20 Minuten. In fact, the party has been pushing for fuel tax reductions for a number of years, arguing it mostly impacts the working middle class in Switzerland.

On Monday, April 13, Germany announced temporary cuts to fuel tax, joining Austria and Italy as countries that have taken action in response to rising prices.

Swiss gov’t divided over fuel tax cuts

Removing or reducing fuel tax would, however, be “a hasty decision”, argues national councillor Martin Candinas (the Centre) as “we need the tax revenue to finance our infrastructure”. Candinas explains that in Graubünden, the price of petrol and diesel varies by around 20 or 30 cents per litre, arguing that “there’s still room for manoeuvre” on price.

David Roth (SP) is also against a cut to the fuel tax, arguing it would increase the price of other energy sources. “We need to implement measures that benefit the entire population”, says Roth.

Switzerland’s fuel supply “currently secure”

So far, the Federal Office for National Economic Supply (BWL) has stated that the country’s fuel supply is “currently secure” and will remain so until the end of April, with reduced deliveries expected to Europe from May.

If needed, the government can release mandatory reserves that could cover petrol and diesel demand for around three to four months.