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BackRecord high diesel prices: Freight forwarders demand government relief from Chancellor Merz
Record high diesel prices: Freight forwarders demand government relief from Chancellor Merz
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n-tv Wirtschaft1 hour agoBusiness1 min readGermanyView original

Record high diesel prices: Freight forwarders demand government relief from Chancellor Merz

Transport companies see their existence threatened by sharply increased fuel costs and reject Economics Minister Reiche's proposal to reduce VAT.

Quick Look

  • Due to the sharp rise in diesel prices following the escalation in the Middle East, German freight forwarders are calling for government aid in an open letter to Chancellor Friedrich Merz.
  • The BGL warns of bankruptcies in medium-sized businesses and rejects a reduction in VAT.

AI-generated summary

Why It Matters

After an escalation in the Middle East and record values, the diesel price has reached a nationwide average of 2.453 euros per liter, according to ADAC.

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Around 1,800 euros in additional costs per truck per month: According to their association, the sharp rise in diesel prices is putting transport companies in distress. However, the industry considers Economics Minister Reiche's proposal to be ineffective.

In view of the record high diesel prices, freight forwarders are calling for state relief in an open letter to Chancellor Friedrich Merz. In the medium-sized transport industry, the situation has worsened dramatically with the increase in fuel costs, according to the letter from the freight forwarders' association BGL.

Since the recent escalation in the Middle East, the price of diesel has risen by around 60 cents per liter. With a monthly mileage of 10,000 km, this would result in additional costs of 1,800 euros per truck. For a vehicle fleet of 50 trucks, this means additional costs of over one million euros per year.

“These cost increases can hardly be borne by the companies alone,” writes BGL board spokesman Dirk Engelhardt. They often could not be passed on to clients or only partially. "The high diesel prices therefore endanger numerous medium-sized companies and weaken the competitiveness of the German economy."

After gasoline, diesel is now more expensive in Germany than ever before. On Wednesday, a liter cost a national daily average of 2.453 euros, exceeding the previous record from April by 0.6 cents, according to figures from the ADAC.

The association opposes Economics Minister Katherina Reiche's proposal to temporarily reduce VAT on fuels. This would not provide any immediate relief for companies that are allowed to deduct VAT from the tax office.

Instead, the BGL is pushing for the double CO2 burden on the German transport industry to be lifted through national emissions trading and the CO2 surcharge on the truck toll. He also calls for the introduction of commercial diesel modeled on other EU member states such as France, Spain and Italy. There, the energy tax for commercially used diesel will be reduced to the EU minimum.

With the sharp rise in fuel prices, the federal government is struggling to find new help for drivers. The German Farmers' Association is also putting pressure on politicians. “We now urgently need a reduction in the energy tax or the CO2 tax on diesel,” said President Joachim Rukwied. However, the proposal to reduce VAT on fuels does not relieve the burden on the economy. For companies with regular taxation, VAT is a continuous item.

What to Watch

AI outlook — possibilities, not facts

  • The federal government is discussing new aid for drivers and transport companies.

    Likely · Within weeks

Open Questions

  • How does Chancellor Merz react to the open letter?
  • Will the federal government introduce commercial diesel?

Related Topics

This article was originally published by n-tv Wirtschaft.

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