VIENNA, March 25 (Reuters) - Austria's lower house of parliament approved draft legislation on Wednesday to pave the way for measures to counter rising petrol prices sparked by the war in the Gulf.
Austria Approves Legislation to Cut Fuel Prices Amid Global Oil Surge
Parliamentary Approval and Government Measures
VIENNA, March 25 (Reuters) - Austria's lower house of parliament approved draft legislation on Wednesday to pave the way for measures to counter rising petrol prices sparked by the war in the Gulf.
Impact of Global Events on Oil Prices
Israeli and U.S. military strikes on Iran and Iran's subsequent threat to shipping through the Strait of Hormuz, through which roughly a fifth of global oil and gas deliveries pass, have driven up oil prices and sent Western governments scrambling to cushion the blow to consumers.
Government Response and Planned Measures
Tax Cuts and Profit Margin Caps
Austria's three-party ruling coalition plans to return to drivers the additional revenue accrued from higher petrol prices in the form of a cut in tax on petrol and diesel. It also wants to cap profit margins for refiners and petrol retailers.
Expected Reduction in Fuel Costs
The measures should initially reduce fuel costs by about 10 euro cents (12 cents) a litre in total from next month, the government said.
Political Dynamics and Opposition Stance
Role of the Greens Party
The draft legislation approval was made possible by the opposition Greens party voting in favour to give the government the two-thirds majority it needed.
Statements from Greens Leader
"This government must take full responsibility for both the success and the failure of its policies," Greens leader Leonore Gewessler told a press conference shortly before her party joined those voting in favour of the legislation.
Concerns Over Effectiveness
However, Gewessler also said she believed that the measures would be ineffective, saying fuel retailers would simply raise their prices further, and urged the government to improve the plans.
"We Greens will not let ourselves be used as an excuse for this government failing to get its act together and bring prices down," she said, explaining her party's vote.
Additional Information
($1 = 0.8639 euros)
(Reporting by Francois MurphyEditing by David Goodman)
