Europe to levy more taxes on diesel

Brussels is working on a new energy tax strategy that will allow it to raise taxes on diesel by eight cents. The measure will have a major impact in Spain, where 67% of vehicles use diesel.

This option won over policymakers because it was taxed at a lower rate than gasoline despite its higher energy content and CO2 emissions. The European Council's intention is to penalize combustible fuels based on how much pollution they cause, which means that drivers will have to pay an average of four more euros to fill up their tanks.

The law is affecting airlines and other big energy users, too. Brussels wants to increase buy in for clean fuel and make the playing field fairer from a tax perspective.