In the context of growing geopolitical tensions, increased focus on environmental policy, and economic challenges facing the average consumer, fuel taxes continue to be a key political factor in European countries. According to a recent study by the Washington-based research institute "Tax Foundation", the European Union requires its members to impose a minimum excise duty of 0.359 euros per liter on gasoline, which is equivalent to approximately $1.60 per gallon.
Although the market for diesel vehicles in the EU is steadily declining, they still account for a significant 10% of new car registrations in the community. This means that some European consumers face excise duties on diesel instead of gasoline. The minimum excise duty required by the EU for diesel fuel is slightly lower - 0.33 euros per liter or $1.47 per gallon.
Differences in excise taxation between member states
The analysis by "Tax Foundation" reveals significant differences in fuel excise taxation among individual EU member states. Malta applies the lowest excise duty on gasoline, exactly at the EU minimum requirement level. Bulgaria follows with a slightly higher rate of 0.363 euros per liter, while Hungary imposes 0.399 euros per liter.
At the other end of the spectrum, the Netherlands stands out with the highest tax on gasoline in the EU - an impressive 0.789 euros per liter. Italy and Denmark also impose significant excise duties, 0.713 and 0.711 euros per liter respectively.
Interestingly, most EU countries apply a lower excise duty on diesel compared to gasoline. Exceptions are Belgium and the United Kingdom (which is no longer part of the EU), where the rates for both fuels are the same. The average excise duty on gasoline in the EU is 0.558 euros per liter, while for diesel this value is 0.458 euros per liter.
Excise duties on diesel fuel
Regarding diesel fuel, Italy again tops the list with the highest excise duty of 0.632 euros per liter. It is followed by the United Kingdom with 0.616 pounds per liter and Belgium with 0.600 pounds per liter. At the other end of the scale, Bulgaria and Malta apply the EU minimum rate of 0.33 euros per liter, while Sweden is slightly above this threshold with 0.35 euros per liter.
It is important to note that these taxation levels also include environmental taxes imposed on fuels. At least seven EU member states apply an additional carbon, energy, or other environmental tax as part of their total excise duty.
Comparison with the USA
To put these figures into perspective, the minimum excise duty in the EU ($1.60 per gallon) significantly exceeds the highest gasoline taxation in the USA, which is approximately $1.255 per gallon in California, including federal and state taxes, as well as environmental fees.
In addition to excise duties, all EU member states also impose an additional value-added tax (VAT) on the sale of gasoline and diesel fuel. Excise duties are charged before VAT taxation, which leads to a cumulative effect and creates a significant financial burden for consumers and European economies as a whole.
Future trends
In light of the EU's ambitious green transition policy aimed at achieving climate neutrality by 2050, fuel taxes are likely to remain a central topic in political debates. Several countries are already taking steps to adjust their tax policies in this area.
In 2025, significant changes in fuel taxation are observed in several European countries:
- Lithuania increased the tax on gasoline by 0.05 euros per liter and on diesel by 0.11 euros per liter compared to the previous year.
- Denmark introduced an annual increase in the excise duty on diesel by 0.089 euros per liter.
- Ireland raised the tax on gasoline by 0.08 euros per liter and on diesel by 0.07 euros per liter.
- Slovenia increased the tax on gasoline by 0.07 euros per liter.
- Portugal applied an equal increase of 0.06 euros per liter for both gasoline and diesel.
On the other hand, Sweden took the opposite approach by reducing the tax on gasoline by 0.07 euros per liter. Bulgaria maintained unchanged excise duty rates on gasoline and diesel fuel in 2025 compared to the previous year.
These changes in fuel taxation reflect the complex balance that European governments are trying to achieve between environmental goals, fiscal needs, and socio-economic considerations. As the EU continues to pursue its ambitious climate goals, the debate around fuel taxation will undoubtedly remain a key element of the political agenda across Europe.