Why does a litre of petrol cost far more in the Netherlands than in Spain or Bulgaria? Behind the price shown at the pump, taxation plays a central role. Excise duties, VAT, national budget choices, environmental policies and increases between July 2025 and January 2026 explain a large share of the gaps observed between European countries.
In Europe, the price of fuel does not depend solely on crude oil or refining. A large share of what drivers pay comes from taxes. Two main levies come into play: excise duty, which is a fixed amount per litre, and VAT, applied as a percentage. This mechanism explains why neighbouring countries can show significant differences on petrol as well as on diesel.
In 2026, the gaps remain very wide. The Netherlands tops the ranking for excise duty on SP95 petrol, while Malta and Bulgaria are among the least taxed countries. On diesel, Italy, Ireland and Belgium remain near the top, while Spain, Slovakia and Sweden keep more moderate taxation.
The table values are those of 1 January 2026. For France, customs publishes excise rates applicable from 1 July 2026, presented in the section devoted to the country.
How are fuel taxes made up in Europe?
Fuel taxation rests on two levels:
- Excise duty: a fixed amount in euros per litre, set by each state.
- VAT: a percentage applied to the selling price, which therefore also applies on top of the fixed tax.
This system produces a cumulative effect: in countries where excise duty is already high, VAT further increases the total burden borne by the driver. This is why taxation weighs heavily in the final price, particularly for petrol.
Comparison table of fuel excise duties in Europe in 2026
The table below summarises several major European markets. It allows a quick comparison of excise duty on SP95 and diesel, the VAT rate, and the excise duty including VAT per litre, that is, the excise duty plus the VAT that applies to it.
| Country | SP95 excise duty | Diesel excise duty | VAT | Excise incl. VAT, SP95 | Excise incl. VAT, diesel |
|---|---|---|---|---|---|
| Netherlands | 0.845 €/l | 0.552 €/l | 21 % | 1.022 €/l | 0.668 €/l |
| Denmark | 0.717 €/l | 0.569 €/l | 25 % | 0.896 €/l | 0.711 €/l |
| Italy | 0.713 €/l | 0.632 €/l | 22 % | 0.870 €/l | 0.771 €/l |
| Ireland | 0.706 €/l | 0.616 €/l | 23 % | 0.868 €/l | 0.758 €/l |
| Greece | 0.700 €/l | 0.410 €/l | 24 % | 0.868 €/l | 0.508 €/l |
| France | 0.683 €/l | 0.594 €/l | 20 % | 0.820 €/l | 0.713 €/l |
| Finland | 0.672 €/l | 0.487 €/l | 26 % | 0.847 €/l | 0.614 €/l |
| Portugal | 0.657 €/l | 0.535 €/l | 23 % | 0.808 €/l | 0.658 €/l |
| Germany | 0.655 €/l | 0.470 €/l | 19 % | 0.779 €/l | 0.559 €/l |
| Romania | 0.602 €/l | 0.552 €/l | 19 % | 0.716 €/l | 0.657 €/l |
| Belgium | 0.600 €/l | 0.600 €/l | 21 % | 0.726 €/l | 0.726 €/l |
| Luxembourg | 0.569 €/l | 0.465 €/l | 17 % | 0.666 €/l | 0.544 €/l |
| Lithuania | 0.562 €/l | 0.554 €/l | 21 % | 0.680 €/l | 0.670 €/l |
| Slovakia | 0.514 €/l | 0.368 €/l | 23 % | 0.632 €/l | 0.453 €/l |
| Spain | 0.504 €/l | 0.379 €/l | 21 % | 0.610 €/l | 0.459 €/l |
| Sweden | 0.434 €/l | 0.359 €/l | 25 % | 0.543 €/l | 0.449 €/l |
| Poland | 0.423 €/l | 0.391 €/l | 23 % | 0.520 €/l | 0.481 €/l |
| Bulgaria | 0.363 €/l | 0.330 €/l | 20 % | 0.436 €/l | 0.396 €/l |
| Malta | 0.359 €/l | 0.330 €/l | 18 % | 0.424 €/l | 0.389 €/l |
How to read the table: excise duty including VAT is calculated as follows: excise duty × (1 + VAT rate). For France, 0.683 × 1.20 = 0.820 €/l on SP95. This amount does not include the VAT applied to the pre-tax price of the fuel, so it does not correspond to all the taxes contained in the pump price.
This ranking immediately shows that France sits in the upper part of the table, but is surpassed on petrol by the Netherlands, Denmark, Italy, Ireland and Greece. On diesel, by contrast, Italy takes first place, ahead of Ireland, Belgium and France.
Tax increases between July 2025 and January 2026 changed the hierarchy
Between the July 2025 reading and the one of 1 January 2026, several member states raised their fuel taxes, sometimes very sharply. These increases explain part of the new gaps visible in the 2026 data.
| Country | Petrol increase since July 2025 | Diesel increase since July 2025 | Comment |
|---|---|---|---|
| Romania | +0.094 €/l | +0.086 €/l | The sharpest increase among the countries cited. |
| Netherlands | +0.056 €/l | +0.036 €/l | Further reinforces first place on SP95. |
| Lithuania | +0.049 €/l | +0.034 €/l | Significant increase on both fuels. |
| Latvia | +0.023 €/l | +0.027 €/l | Noticeable increase, especially on diesel. |
| Portugal | +0.022 €/l | +0.031 €/l | Tighter taxation, notably on diesel. |
| Czechia | +0.021 €/l | +0.016 €/l | More moderate but visible rise. |
| Ireland | +0.017 €/l | +0.020 €/l | Consolidates its place among the most heavily taxed countries. |
| Other member states | < 0.020 €/l | < 0.020 €/l | Smaller changes, legislative or linked to currency conversions. |
Romania is the most striking case among the countries listed, with an increase of nearly 10 cents on petrol and more than 8 cents on diesel. The Netherlands has also sharply raised its taxation, which contributes to its status as the most heavily taxed country in Europe on SP95 in this dataset. Lithuania, Latvia and Portugal also show a clear move towards heavier taxation.
France, Spain, Germany, Luxembourg: four very different models
For French drivers, comparing the taxation of neighbouring countries helps to better understand the differences seen at the pump.
France
With an excise duty of 0.683 €/l on SP95 and 0.594 €/l on diesel as of 1 January 2026, France remains in the group of heavily taxed countries. Its 20 % VAT further reinforces the weight of taxation. This explains why the issue of fuel prices remains highly sensitive politically and socially.
Since 1 July 2026, the customs circular of 29 June 2026 sets excise duty in mainland France (excluding Corsica) at 0.6075 €/l on diesel, 0.6902 €/l on SP95-E5 and SP98 and 0.6702 €/l on SP95-E10. The table keeps the values of 1 January 2026 so that it remains comparable with the other countries.
Spain
Spain keeps a clearly more moderate level of taxation, with 0.504 €/l on SP95 and 0.379 €/l on diesel. This difference mechanically creates very visible gaps for border areas and for drivers who compare prices at the European level.
Germany
Germany sits at a high level on petrol, but clearly lower than France on diesel. Its model illustrates a compromise between substantial taxation, the economic weight of transport and the need to remain competitive within the European market.
Luxembourg
Luxembourg remains a special case. Its level of taxation, lower than that of France, Belgium or Germany, makes it a classic point of attraction for motorists and transport professionals.
Why is diesel often taxed less than petrol?
In many European countries, diesel still benefits from lower taxation than petrol. This is explained historically by the weight of road transport, logistics and professional uses. Taxing diesel more lightly made it possible not to burden freight, trade and travel linked to economic activity excessively.
However, this tax advantage is increasingly being called into question. With climate objectives, the pressure for a convergence between petrol and diesel remains strong. The increases recorded between July 2025 and January 2026 in several countries show that the trajectory is rather towards a gradual increase in taxation, including on diesel.
What is the concrete impact for motorists and hauliers?
When taxation rises by a few cents per litre, the effect on the annual budget can be considerable. For a driver who uses 1 500 litres a year, an increase of 0.05 €/l already represents 75 € extra. At the scale of a vehicle fleet or road haulage, the impact becomes much larger.
This reality explains:
- refuelling decisions near borders;
- fuel tourism;
- political tensions around tax increases;
- the sensitivity of fuel prices in public debate.
The most heavily taxed countries in 2026
Focusing on SP95 petrol, the Netherlands, Denmark, Italy, Ireland and Greece clearly dominate the ranking. On diesel, Italy, Ireland, Belgium and France appear at the top of the table.
At the other end, Malta, Bulgaria, Poland and Spain keep more moderate levels of taxation depending on the fuel. This does not automatically mean the final price there will always be the lowest, since other factors come into play, but taxation remains a major determinant.
FAQ on fuel taxes in Europe
Which country taxes petrol the most in Europe in 2026?
In this table, the Netherlands comes first on SP95, with an excise duty of 0.845 €/l.
Which country taxes diesel the most in Europe in 2026?
For diesel, Italy is the highest in the data used, with 0.632 €/l.
Why do fuel prices differ so much between European countries?
Because each state sets its own level of excise duty and its own VAT rate. Crude oil is a common factor, but taxation creates very large gaps.
Is France among the most heavily taxed countries?
Yes. In 2026, France is among the countries with high taxation on both petrol and diesel.
Did taxes rise between July 2025 and January 2026?
Yes. Several countries raised their taxes, notably Romania, the Netherlands, Lithuania, Latvia, Portugal, Czechia and Ireland.
2026 energy crisis: temporary cuts that blur the ranking
Since late February 2026, the escalation of the conflict in the Middle East has caused a sharp and lasting rise in wholesale and retail fuel prices across the European Union, with occasional peaks of +14 % on petrol and up to +30 % on diesel compared with pre-crisis levels. Faced with this surge, several member states obtained temporary derogations from the Council of the European Union allowing them to apply excise duties below the European minimum, a possibility provided for by the Energy Taxation Directive.
Croatia thus obtained a reduction of 0.2195 €/l on unleaded petrol and of 0.225 €/l on diesel, applicable from 1 August 2026 to 31 January 2027. Sweden cut its diesel excise by 0.40 SEK/l and its petrol excise by 1.025 SEK/l between May and September 2026, before reinforcing this cut by a further 2.40 SEK/l from 1 July. Germany, for its part, applied a reduction of 0.14 €/l on diesel excise from 1 May to 30 June 2026, at an estimated budgetary cost of 1.6 billion euros, while Italy maintained a cut of 0.20 €/l on diesel until 22 May 2026 — having also aligned, as early as January 2026, its diesel excise with that of petrol in its budget law.
Other countries — Poland, Hungary, Czechia, Austria, Portugal, Romania, Bulgaria, Cyprus, Greece, Latvia and Spain in particular — introduced comparable support measures during the first half of 2026. A large share of these schemes ended on 30 June 2026, a pivotal date when several national measures expired simultaneously.
These derogations are by nature temporary and do not change the structural scales presented in the table. They nonetheless explain why the tax actually applied at the pump may have departed, for several months in 2026, from the official excise duty in force on 1 January — a gap to keep in mind when comparing fuel prices in Europe country by country.
Sources and methodology
The excise duties per litre and the VAT rates in the first table are those in force on 1 January 2026, as compiled by the Tax Foundation in its study Diesel and Gas Taxes in Europe, 2026. This study draws on the European Commission's “Taxes in Europe Database”.
The French rates applicable from 1 July 2026 come from the circular of 29 June 2026 of the Ministry of the Economy and Finance, « Droits et taxes applicables aux produits énergétiques à compter du 1er juillet 2026 » (annex 1.1, energy excise rates in euros per hectolitre), published on the customs website.
The changes in the second table correspond to the changes recorded by the Tax Foundation compared with its July 2025 reading. The “excise duty including VAT” values are calculated by us from these excise duties and these VAT rates, using the formula given under the first table.