Fuel prices fall before the fuel discount comes into effect
Despite falling prices before the deadline, there is disagreement about whether the tax cut will be fully passed on to consumers.
Quick Look
- Before the fuel discount came into effect on Thursday, fuel prices in Germany had already fallen.
- While the trade association en2x promises full transfer, the ADAC is skeptical about the price advantages for drivers.
AI-generated summary
Why It Matters
The fuel discount is a government measure to reduce energy and VAT on fuels. Similar measures were already implemented in May and June.
Munich. The fuel discount applies from Thursday, fuel prices have already fallen beforehand. According to ADAC data, on Wednesday morning at 10 a.m. Super E10 was 4.2 cents cheaper than at the same time on Tuesday. Diesel fell by 3.9 cents. Shortly before the price jump at midday, gasoline and diesel were around 5 cents cheaper than 24 hours earlier, according to data from the fuel price portal Tankerkönig. The midday jump on Wednesday was still slightly higher than last.
On Tuesday, prices had already fallen compared to the national daily average. According to ADAC, a liter of E10 cost 2.258 euros, 1.8 cents less than on Monday, while diesel fell by 1.6 cents to 2.409 euros.
The reasons for the noticeable drop in prices at the pumps cannot be clearly stated, according to the ADAC. "However, the recent relaxation on the international oil markets is likely to play a role. In addition, fuel prices have recently reached an exceptionally high level." The price development also shows that there is definitely scope for price reductions given the currently very high price level.
Prices are likely to fall again on Thursday night. Then the tax discount of 16.7 cents per liter on fuel applies. Although it only affects fuel that leaves the tank farms and refineries after midnight, the Fuels and Energy trade association (en2x) expects the discount to be passed on in full immediately. “The new reduction in energy and VAT will be passed on from October 1st at midnight without restrictions or surcharges - as was the case in May and June,” says the association's general manager, Christian Küchen.
The ADAC is more skeptical here. “Prices will gradually decline,” says fuel market expert Christian Laberer. “We are calling for it to be passed on completely and as quickly as possible, but there is a fear that there will be deadweight effects, meaning that the tax discount will not fully reach the driver.”
The en2x contradicts this with reference to the “intense competition” from 14,000 gas stations in Germany. “Studies that claim otherwise usually do not take into account the fact that, in addition to tax rates, other cost factors change frequently and are just as relevant for pricing at gas stations,” emphasizes Küchen.
But there are other critical voices on this topic: When it came to the fuel discount in May and June, the Ifo Institute, the Monopolies Commission and the Federal Cartel Office, among others, came to the conclusion that the discount was largely passed on, but not 100 percent. The en2x has always contradicted this.
The ADAC does not expect that gas stations will run out of fuel on Thursday due to the expected high demand. “That wasn’t the case last time in May either and back then there was the additional problem that May 1st is a public holiday,” says fuel market expert Laberer.
What to Watch
AI outlook — possibilities, not facts
Prices drop on Thursday night due to the tax discount.
Very likely · Within hours
Open Questions
- Is the discount fully passed on to end consumers?
- How much will prices actually fall after October 1st?
