Photo: expert.in
The European Union is preparing to extend its carbon-pricing system to road transport fuels through the new ETS2 scheme. However, there will be no separate annual tax on older petrol or diesel cars.
Under the system, carbon allowances will be purchased by fuel suppliers — including oil companies and fuel importers — rather than directly by vehicle owners.
Drivers could pay more at the pump
Suppliers may pass the additional costs on to consumers through higher petrol and diesel prices. This means motorists would feel the impact not through a separate tax bill, but when filling up their cars.
The biggest effect is expected to be on vehicles with high fuel consumption and drivers who cover long distances. Even a small increase in the price per litre can become significant over the course of a year for motorists with high mileage.
The exact impact on fuel prices cannot yet be determined. It will depend on the cost of carbon allowances, oil prices, exchange rates and the tax policies of individual EU countries.
Older cars will not be banned
ETS2 does not automatically prohibit older petrol or diesel vehicles. Cars that continue to meet applicable technical and environmental requirements can still be driven.
However, running an older, fuel-hungry vehicle could become more expensive. Owners may therefore face a choice between spending more on fuel or switching to a more efficient vehicle.
What it means for Ukrainians
The changes will directly affect motorists in EU countries. For Ukrainians, they may matter when travelling in Europe or considering buying a used car on the European market.
If operating inefficient petrol and diesel vehicles becomes more expensive across the EU, this could also influence the European used-car market and the decisions of owners looking to sell such vehicles.
To help reduce the financial impact on lower-income households, the EU has established the Social Climate Fund, which is intended to provide support to vulnerable households affected by higher energy and transport costs.
