Starting October 1, Germany will reduce fuel taxes, which is expected to lead to lower prices at the fuel pumps. However, consumer organizations and automotive clubs are tempering expectations. They recall that during the previous tax cut, many of the savings were absorbed by the fuel industry, leaving drivers without the full benefits. Experts are concerned that a similar scenario could unfold again.
Auto Club Europa (ACE) has particularly highlighted the suspicious rise in prices, noting that “even though oil prices have not reached previous record levels, the prices for Super E5 and E10 gasoline have recently hit new highs.” ACE’s grim forecast suggests that “there is no reason to assume that fuel prices will significantly drop shortly after October 1.” This implies that the tax relief may dissipate before drivers even notice it.
Ramona Pop, a board member of the Federal Association of Consumer Centers, has also dampened hopes, referring to the last fuel tax cut in spring. She emphasized that there are “clear indications” that the previous relief was not fully passed on to customers. Meanwhile, oil companies reported record profits. Pop argues that the fuel tax cut does not guarantee that the relief will actually reach consumers.
This Time, Fuel Tax Relief Must Fully Reach Drivers
ACV Automobil-Club Verkehr shares a similar assessment, stating, “The effect of the tax relief must fully benefit drivers. The fuel tax cut is meant to relieve people at the pump, not to increase margins across the entire supply chain.” According to the Federal Cartel Office, consumers received only about 80 percent of the relief during the spring. “This cannot happen again.”
ADAC notes that the recent increases in oil prices and the euro to dollar exchange rate only partially justify the current price levels. The automotive club expects that the fuel industry will fully pass on the tax relief to consumers this time. Prices already have been excessively high in some areas since April. Additionally, Andreas Mundt, the president of the Federal Cartel Office, called on oil companies in an interview with “BILD” to pass on this relief “as fully and as quickly as possible.”
