European countries cut taxes to lower fuel prices, no relief planned in Georgia

To stop rising fuel prices, European countries have introduced tax relief. In Georgia, however, the government is not currently planning a similar step, as it believes the effect would be insignificant.

Under a decision by the German federal government, thanks to tax relief, one liter of gasoline became 17 cents cheaper in September. The change is expected to save citizens 2.5 billion euros until 2027.

In Spain, tax relief reduced the price of one liter of fuel by 20 cents in October. The size of the price reduction in November-December will depend on the annual inflation rate.

Poland reduced the VAT on fuel from 23% to 8%. Under the original plan, the relief was to end on May 31, 2026, but global oil prices rose further instead of falling, so the relief was extended and remains in effect as of October.

Sweden reduced the carbon dioxide tax on gasoline and diesel by 2.4 kronor per liter, about 24 cents. In the Baltic countries, tax relief made one liter of fuel 6-8 cents cheaper.

In the US in October, by decision of Donald Trump, tax relief applicable to diesel intended for agriculture was extended to owners of light vehicles as well.

Several factors have caused fuel prices to rise worldwide. The price of crude oil is above 110 dollars per barrel, but does not reach a record level. In addition, the cost of transportation and processing has increased significantly, which has pushed retail prices up even further.

Fuel prices in Georgia are at record levels. Regular gasoline exceeds 4 lari, premium is 4.30 lari, super is 4.60 lari, and the price of diesel has even passed the 5 lari mark.

Halving the excise tax would make one liter of fuel 20-22 tetri cheaper, while temporarily abolishing it would reduce the price by 40-45 tetri. Prime Minister Irakli Kobakhidze said that the introduction of a similar relief is not being considered.