Which European country has the highest fuel tax?

Among EU member states, the Netherlands and Italy consistently have the highest total fuel taxation (excise duty + VAT) on petrol and diesel. The Netherlands charges petrol excise duty of approximately €0.79/litre + 21% VAT; Italy charges approximately €0.73/litre excise + 22% VAT. Including VAT, total tax as a percentage of the pump price reaches 60–65% in these countries. The UK (post-Brexit) maintains fuel duty of £0.5295/litre + 20% VAT — also among Europe's highest in absolute terms. At the lower end, Eastern European countries (Romania, Hungary, Bulgaria) traditionally had lower excise duties, though EU minimum rates create a floor. Hungary introduced a retail price cap in 2021–2023 that temporarily held prices at ~HUF 480/l regardless of tax structure.

What is the EU minimum fuel excise duty?

The EU Energy Taxation Directive (ETD) sets minimum excise duty rates for fuel: unleaded petrol minimum €0.359/litre; diesel (gas oil) minimum €0.330/litre. These EU minimums have not been revised since 2003 and have eroded significantly in real terms due to inflation. The European Commission proposed a revised ETD in 2021 that would increase minimums, align taxation with energy and carbon content, and introduce carbon pricing for road fuels (pre-ETS2). This revision has faced Council opposition and has not yet been adopted. In practice, all EU member states significantly exceed the EU minimum rates, but the gap between highest-taxing (Netherlands, Italy) and lowest-taxing (Romania, Bulgaria) EU members can exceed €0.30–0.40/litre on petrol excise alone.

Why is diesel taxed less than petrol in Europe?

Diesel has historically been taxed at a lower excise rate than petrol across most EU member states — a policy known as the 'diesel advantage' or 'diesel tax gap.' The rationale was that diesel is used heavily in commercial road transport (trucks, vans) which underpins the economy; a lower diesel excise rate was seen as an indirect subsidy to logistics and agriculture. The diesel tax gap is typically €0.05–0.20/litre across EU members. However, this policy is under increasing pressure: (1) diesel emits more NOx and particulates than petrol, contributing to urban air quality problems; (2) the EU Energy Taxation Directive revision proposes equalising petrol and diesel minimum excise; (3) ETS2 (the EU emissions trading system for road transport and buildings fuels, launching ~2027) will add a carbon cost on top of excise duty that may narrow the effective price gap further.

Fuel Tax Comparison Europe 2026

Published 1 October 2026 · Updated 22 October 2026

Fuel taxes are the single largest component of petrol and diesel prices at European filling stations — typically 50–65% of the total pump price. Understanding how taxes differ across Europe explains why you pay €2.00/litre in the Netherlands but €1.30/litre in Romania for essentially the same underlying product. This guide maps excise duties, VAT rates, and total tax burden across major European markets in 2026.

For how the pump price is built up from crude oil through refining and retail, see our price at the pump guide. For excise duty explained, see our excise duty glossary entry. For VAT on fuel, see our VAT fuel tax glossary entry.

Fuel excise duty by European country (2026)

Country	Petrol excise (€/l)	Diesel excise (€/l)	VAT rate	Approx. pump price petrol
Netherlands	~€0.79	~€0.53	21%	~€1.90–2.10/l
Italy	~€0.73	~€0.62	22%	~€1.80–1.95/l
Finland	~€0.72	~€0.53	25.5%	~€1.85–2.00/l
Germany	~€0.655	~€0.470	19%	~€1.70–1.85/l
France	~€0.68	~€0.59	20%	~€1.70–1.90/l
UK	£0.5295 (~€0.62)	£0.5295 (~€0.62)	20%	~£1.45–1.60/l
Sweden	~€0.58	~€0.53	25%	~€1.75–1.95/l (SEK)
Norway (non-EU)	~€0.70 + CO2 fee	~€0.55 + CO2 fee	25%	~€2.00–2.20/l (NOK)
Spain	~€0.44	~€0.38	21%	~€1.55–1.70/l
Poland	~€0.38	~€0.34	23%	~€1.35–1.55/l (PLN)
Romania	~€0.36	~€0.33	19%	~€1.30–1.50/l (RON)
Bulgaria	~€0.36	~€0.33	20%	~€1.30–1.50/l (BGN)
EU minimum (ETD)	€0.359	€0.330	—	—

Note: Excise rates are approximate; exact rates vary by fuel grade and country-specific levies. Pump prices vary with crude price and local retail margins.

Total tax as % of pump price

The total tax burden (excise + VAT) as a share of the pump price depends on both the fixed excise rate and the variable crude oil price:

High oil price environment (Brent ~$90+/bbl): Tax share falls to ~50–55% as the pre-tax component grows while excise stays fixed
Low oil price environment (Brent ~$50–60/bbl): Tax share rises to ~60–70% as the pre-tax component shrinks
At typical 2026 prices (Brent ~$75–85/bbl), total European fuel tax is approximately 55–65% of pump price across major markets
UK: Fuel duty (£0.5295/l) + VAT (20%) at £1.50/l pump price = approximately 55–58% tax share
Netherlands: Excise (€0.79/l) + VAT (21%) at €2.00/l = approximately 64% tax share

EU Energy Taxation Directive reform

The EU Energy Taxation Directive (ETD) dates from 2003 and sets minimum excise duties that have not kept pace with inflation or the carbon pricing agenda:

Current EU minimum: €0.359/litre for petrol; €0.330/litre for diesel — well below actual rates in any member state
2021 revision proposal: align taxation with energy content (€/GJ basis) and carbon content; phase out diesel tax advantage; add minimum rate for aviation kerosene and maritime fuel (currently exempt)
Council objections: unanimous voting requirement in tax policy means revision requires all 27 member states to agree; several member states (particularly those benefiting from lower rates or diesel transport industries) have blocked
Impact if adopted: aviation and maritime fuel would face excise for the first time; diesel advantage narrows; countries with below-EU-average rates would need to raise duty

For the aviation fuel tax debate, see our SAF 2026 analysis.

ETS2: carbon pricing for road fuel (from ~2027)

The EU Emissions Trading System 2 (ETS2) will introduce carbon pricing for road transport and heating fuels:

ETS2 covers distributors of petrol, diesel, heating oil, and natural gas for combustion in transport and buildings
Initial carbon price capped at €45/tonne CO2 equivalent (~2027 launch); uncapped from ~2030
Pass-through to pump prices: at €45/tCO2, ETS2 adds approximately €0.10/litre on petrol and €0.12/litre on diesel
At €100/tCO2: approximately €0.23/litre on petrol — a significant additional burden on top of existing excise
Social Climate Fund: ETS2 revenues earmarked partly to fund measures supporting vulnerable households affected by higher fuel and heating costs

For the broader EU carbon market context, see our carbon credit glossary entry. For how ETS2 was discussed at EU Energy Week, see our EU Energy Week 2026.

Why do European countries set fuel taxes so differently?
Despite the EU's internal market and minimum ETD rates, fuel excise duty varies nearly 2:1 between the highest-taxing (Netherlands, Italy) and lowest-taxing (Romania, Bulgaria) EU members. Key reasons: (1) Fiscal tradition — Northern European welfare states historically use high fuel taxes as a revenue source; (2) Climate and externality policy — Scandinavia and the Netherlands price carbon via fuel taxes; (3) Competitiveness concerns — Eastern European member states with lower average incomes keep fuel taxes lower to maintain affordability and transport competitiveness; (4) Geographic factors — countries dependent on road haulage (Poland, Hungary) face political pressure to keep diesel duty low; (5) Tax policy unanimity — the EU cannot harmonise upward without unanimous consent. For global price context, see our global petrol price comparison guide.

Frequently asked questions

Which European country has the highest fuel tax? Netherlands and Italy have the highest petrol excise duties (~€0.79/l and ~€0.73/l respectively) plus 21–22% VAT — total tax reaching 60–65% of pump price. Norway (non-EU) is also very high with excise + CO2 tax. At the low end: Romania and Bulgaria at ~€0.36/l — near the EU minimum of €0.359/l.: Netherlands and Italy have the highest petrol excise duties (~€0.79/l and ~€0.73/l respectively) plus 21–22% VAT — total tax reaching 60–65% of pump price. Norway (non-EU) is also very high with excise + CO2 tax. At the low end: Romania and Bulgaria at ~€0.36/l — near the EU minimum of €0.359/l.
What is the EU minimum fuel excise duty? EU Energy Taxation Directive (ETD, 2003) minimum: €0.359/litre for unleaded petrol; €0.330/litre for diesel. All EU member states exceed these minimums in practice. A 2021 revision proposal would raise minimums and align rates with energy/carbon content — but requires unanimous Council agreement and has not been adopted due to member state opposition.: EU Energy Taxation Directive (ETD, 2003) minimum: €0.359/litre for unleaded petrol; €0.330/litre for diesel. All EU member states exceed these minimums in practice. A 2021 revision proposal would raise minimums and align rates with energy/carbon content — but requires unanimous Council agreement and has not been adopted due to member state opposition.
Why is diesel taxed less than petrol in Europe? The "diesel advantage" (€0.05–0.20/l lower excise in most EU countries) was designed to support commercial road transport (trucking, farming). It is now under pressure: diesel's higher NOx/particulate emissions, the EU ETD revision proposal (which would equalise rates), and ETS2 carbon pricing on road fuels. ETS2 adds ~€0.12/l on diesel vs ~€0.10/l on petrol at €45/tCO2 — slightly narrowing the advantage.: The "diesel advantage" (€0.05–0.20/l lower excise in most EU countries) was designed to support commercial road transport (trucking, farming). It is now under pressure: diesel's higher NOx/particulate emissions, the EU ETD revision proposal (which would equalise rates), and ETS2 carbon pricing on road fuels. ETS2 adds ~€0.12/l on diesel vs ~€0.10/l on petrol at €45/tCO2 — slightly narrowing the advantage.