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Europe's Diesel Drivers Beware: Heftier Tax Is on the Way

  • Diesel levies rise as fuel’s discount to gasoline narrows
  • Public perception has shifted amid Dieselgate, clean-air laws
Petrol Prices At An ASDA Group Ltd Supermarket As Prices Fall Below £1 Per Litre

Photographer: Luke MacGregor/Bloomberg

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Here’s another reason not to buy a diesel-powered car, and why consumption of the fuel could ebb in one of the world’s biggest demand centers: tax.

For decades governments within the European Union have taxed diesel at a lower rate than rival gasoline, but that advantage is eroding fast as they seek to clean up the environment, and the fallout from Dieselgate rumbles on more than three years after it happened. The shift illustrates a fundamental change in the treatment of a transport fuel that has long been favored across the continent.