The EU sets harmonised minimum rates of excise duty for all energy products used for heating, transport and electricity. EU legislation on excise duties for energy covers:
- The rates and structure of excise duties for energy products
- Specific provisions for aircraft fuel
- Fiscal marking of gas oils and kerosene
Rates and structure
The Energy Taxation Directive establishes the minimum excise duty rates that EU countries must apply to energy products for fuel and transport, and electricity.
EU legislation only sets harmonised minimum rates. Member States are free to apply excise duty rates above these minima, according to their own national needs.
Minimum rates for motor fuels
| Fuel | Rate expressed per | Rate |
|---|---|---|
| Leaded petrol | Euro per 1000 litres | 421 |
| Unleaded petrol | Euro per 1000 litres | 359 |
| Gas Oil | Euro per 1000 litres | 330 |
| Kerosene | Euro per 1000 litres | 330 |
| LPG | Euro per 1000 kilograms | 125 |
| Natural Gas | Euro per gigajoule | 2.6 |
Minimum rates for motor fuels used for commercial and industrial use
| Fuel | Rate expressed per | Rate |
|---|---|---|
| Gas Oil | Euro per 1000 litres | 21 |
| Kerosene | Euro per 1000 litres | 21 |
| LPG | Euro per 1000 kilograms | 41 |
| Natural Gas | Euro per gigajoule | 0.3 |
Minimum rates for heating and electricity
| Fuel | Rate expressed per | Rate for business | Rate for non-business |
|---|---|---|---|
| Gas Oil | Euro per 1000 litres | 21 | 21 |
| Heavy fuel oil | Euro per 1000 kilos | 15 | 15 |
| Kerosene | Euro per 1000 litres | 0 | 0 |
| LPG | Euro per 1000 kilograms | 0 | 0 |
| Natural Gas | Euro per gigajoule | 0.15 | 0.3 |
| Coal and Coke | Euro per gigajoule | 0.15 | 0.3 |
| Electricity | Euro per MWh | 0.5 | 1.0 |
Aircraft fuel
Aircraft fuel, other than that used in private pleasure-flying, is exempt from excise duty. The exemption is included in the Energy Tax Directive 2003/96/EC (Article 14(1)(b)).
However, EU countries can tax aviation fuel for domestic flights and, by means of bilateral agreements, also fuel used in intra-EU flights. In such cases, EU countries may apply a level of taxation below the minimum level set out in the Energy Tax Directive.
Fiscal marking of gas oils and kerosene
Council Directive 95/60/EC provides a common marking system to identify gas oil and kerosene subject to a reduced excise rate. This includes for example mineral oils used as propellants.
The aim of this marking is to prevent tax evasion and ensure the proper functioning of the internal market. The rules are without prejudice to national provisions on fiscal marking.
Studies
Background study for the evaluation of Directive 95/60/EC (2018)
Evaluation SWD (2019) 303 of Directive 95/60/EC
The evaluation confirmed that the Euromarker Directive has mostly achieved its original objectives as set out by the legislators and it has done so in an effective and efficient manner.
At the same time the evaluation confirmed some shortcomings with the robustness of the chemical substance currently used as Euromarker and noted that ad better performing fiscal marker that is more robust and resilient to removal from the marked fuels could help boost the role of the Directive as an anti-fraud instrument.
Validation of the Draft Community Reference Method for the determination of Solvent Yellow 124 in gas oil (Euromarker)
Review of the Energy Taxation Directive (proposal)
In July 2021, the Commission put forward a proposal to revise the Energy Taxation Directive. The proposal aims to ensure more coherence with other EU policies and contribute to achieving the EU’s mid- and long-term energy and climate objectives.
Legal texts
- Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity
- Council Directive 95/60/EC of 27 November 1995 on fiscal marking of gas oils and kerosene