Browse by topic: Air Pollution, Fuels, Pricing and taxation


Europe gifting €2,600 subsidy for every diesel car through low diesel tax – study

Europeans pay 14 cent more on average in tax for a litre of petrol than for diesel – indirectly subsidising diesel cars to the order of €2,600 per vehicle, a new study by sustainable transport group Transport & Environment (T&E) finds. This 30% tax gap in favour of diesel is a key reason for diesel cars’ majority share of new sales in Europe and leads to air quality problems where nine out of 10 diesel cars fail to meet NOx limits when driven on the road. [1]

Europe's tax deals for diesel

Sketch of a book (default image for publications

The gap between petrol and diesel taxes in Europe is quite unique in the world and is the main reason why diesel engines have taken off in Europe and not worldwide. This study analyses fuel price and tax trends since 1980 and adds a specific analysis of diesel tax paid by trucks. It finds that in 2014 the gap in tax levels for diesel and petrol paid by motorists was €0.14/l, which is 30% lower than petrol per unit of energy or tonne of CO2.