Austria’s coalition government says it will further shrink its recently introduced “petrol price brake”, an inflation-fighting measure aimed at cushioning consumers from the rise in oil prices caused by the Iran war, according to Reuters.

The mechanism, which combines trimming retailers’ margins and returning an increased value-added tax take from higher fuel prices to consumers in the form of lower petrol tax, requires the government to set the size of those two elements each month.

Currently, the reduction in margins is set at €2.5 euro cents per litre and the tax reduction at €2 cents per litre. From June 1, the margin cut will be scrapped and the tax reduction trimmed to €1.7 cents per litre, the economy ministry says in a statement.