Unlike other European countries, Switzerland’s federal authorities do nothing to mitigate the steadily rising petrol prices.
On September 18th, the average price of diesel in Switzerland – 2.41 francs per litre – has hit a record high.
Unleaded 95 – the most commonly used by motorists in Switzerland – has also become more expensive, having reached 2.10 francs per litre – an increase of 5 cents in a span of week.
This cost evolution aligns with what is happening across Europe as well.
Fuel prices are skyrocketing pretty much everywhere due to political tensions caused first by Russia’s invasion of Ukraine in 2022 and, more recently, by the war involving Iran and disruptions to oil flows in the Middle East, which are exerting significant pressure on oil and refined product markets.
However, in some other countries, governments are stepping in to relieve the financial burden of soaring prices on consumers.
In Germany, for instance, the federal government plans to reintroduce a fuel tax cut from October, with similar measures in Austria, Norway, as well as other states.
READ MORE: How expensive are fuel prices around Europe right now?
A ‘neutral’ approach
Not so in Switzerland.
Neutrality – that is, a policy of non-intervention – seems to extend to the government’s stance toward fuel prices as well.
Despite repeated calls from legislators for state aid, no relief measures are currently planned on the federal level.
In fact, according to the State Secretariat for Economic Affairs (SECO), the Federal Council’s lack of action in this regard has a specific purpose.
“In the current context, it is essential that fuel prices reflect signals of scarcity,” SECO said. “This encourages conservation, a shift to alternatives, improved efficiency, and investment in other solutions.”
Otherwise, “the incentive for motorists to take precautionary measures would disappear, thereby weakening economic resilience,” it added.
Under what circumstances – if any – would the Federal Council step in to alleviate the blow of high petrol prices?
There is no specific price threshold that would trigger government intervention, SECO said.
Price increases themselves play no role; instead, the decisive factor would be the overall performance of the economy.
“Additional economic policy measures should be considered only in the event of a threat of severe recession.,” SECO pointed out. “However, there are currently no signs pointing to such a development.”
Generally speaking, does the Swiss government ever step in to mitigate prices?
According to the Review of Swiss Politics and Economy, it may do so “as part of its social policy, aiming to guarantee the entire population’s access to essential services such as basic medical care, electricity, and public transport.”
Fuel prices don’t fall under this category.
