The price of fuel at Swiss pumps has increased by up to 25 percent in the past several weeks. Is the government taking any action to neutralise this upward trend as governments in neighbouring countries are?
Since the start of the war in Iran on February 28th – and particularly the blockade of the Strait of Hormuz – pump prices in Switzerland have skyrocketed.
For instance, the price of unleaded 95 has gone up from 1.67 to 1.89 francs per litre, while unleaded 98 has risen from 1.78 to 2 francs.
As for diesel, its price surged from 1.75 to 2.24 francs.
These figures represent increases of 13, 12, and 25 percent, respectively.
What – if anything – is the Swiss government doing to mitigate these price hikes?
In neighbour states, as well as in many other countries, governments are introducing various measures to alleviate the burden of higher gasoline prices on their consumers.
Germany, Austria, and Italy, for example, have lowered their respective energy taxes.
What about Switzerland?
To date, no plans exist to ease the burden of climbing petrol prices on consumers’ wallets.
According to the Federal Office for National Economic Supply (BWL), price fluctuations do not constitute grounds for federal intervention.
For its part, the Federal Council said that it “has no control over distributors’ margins and cannot decide to cap gasoline prices, as is done in some other countries.”
However, “in case of a suspicious increase in margins, the Competition Commission (COMCO) may launch an investigation. The price watchdog may also intervene if prices appear abusive.”
READ MORE: How Switzerland’s price watchdog can help you save money
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‘Rapid relief’
MPs are divided on this issue, with some supporting the government’s stance and others opposing it.
In an open letter to the Federal Council, several Swiss People’s Party deputies have pushed for the reduction in the mineral oil tax which “constitutes a significant portion of the final price of fuel and therefore offers a direct lever for rapid relief.”
But others oppose government interference to lower at-pump prices – an action that would, they say, stem the flow of money into state coffers.
“We need [mineral oil] tax revenues to fund the high quality of our infrastructure,” said Centre Party MP Martin Candinas.
Another legislator, David Roth from the Social Democratic Party, is also against the tax cut.
“If we want to provide relief to the population, we must boost overall purchasing power,” he said.
As for Green Liberal deputy Barbara Schaffner, the solution to higher petrol prices lies elsewhere – namely, “a faster transition toward alternative energy sources,” she said.
