FUEL IN GERMANY HAS BECOME MORE EXPENSIVE AGAIN, BUT TODAY A PRICE REDUCTION COMES INTO EFFECT. WHAT DISCOUNTS CAN I EXPECT?
After several weeks of a downward trend, the price of diesel fuel increased compared to the previous week, the German automobile club ADAC informed on Monday. Today, a lower energy tax rate will apply in Germany.
Before the reduction of the energy tax planned for June 1, fuel prices at German gas stations skyrocketed, ADAC reported. Both petrol and diesel cost a few euro cents more than last week. Diesel cost € 2,026 on Sunday, meaning 3.2 cents per liter more than last week’s Tuesday. The price of the Super E10 averaged 2,129 euros per liter, which means an increase of 3.9 euro cents.
Thus, gasoline continues its upward trend that has been going on for about a month. At the end of April, the fuel was over 17 cents cheaper than it is today. In the case of diesel, on the other hand, we observe a trend reversal after several weeks of declines. ADAC criticizes both values as too high.
WHEN WILL THE PRICES FALL AFTER THE TAX REDUCTION?
Taking into account the recent increases, even after the reduction of the energy tax, fuel prices may be higher than before the outbreak of the war in Ukraine. The day before the Russian attack, the E10 cost EUR 1,750 per liter, while diesel fuel EUR 1,663. The tax credit – including VAT – is 35.2 cents per liter of gasoline and 16.7 – for diesel. Even if we implement the discounts in full at the stations, the E10 would still be slightly more expensive and diesel fuel much more expensive than before Russia’s invasion of Ukraine.
In addition, it should be remembered that gas station operators are not legally obliged to implement lower prices, reports the first German public television channel “Das Erste”. According to German television, from June 1 to the end of August, gas stations can buy fuel and diesel fuel with a reduced energy tax.
However, the fuel available at gas stations was bought in May, so at the old tax rate. These fuels have to be sold first at the old prices. How quickly this can be done depends on the gas station in question.
The Central Association of the Petrol Stations Industry points out that drivers cannot expect an immediate drop in fuel prices. Because few operators can afford to “offer more expensive purchased gasoline and diesel fuel at lower prices.” ADAC has already announced that it will carefully monitor price changes at distributors.
We expect that from June 1, the full tax cut will be transferred to consumers. Moreover, given the inflated price level, there is a great potential for price reductions, claims ADAC.
The Federal Antimonopoly Office also wants to take a closer look at the developments
FUEL PRICES IN POLAND
The prices for individual fuel types predicted for the beginning of June by e-petrol.pl, are as follows: PLN 7.46-7.59 for a liter of 95-octane gasoline, PLN 7.13-7.25 for a liter of diesel, and PLN 3.57- 3.68 per liter of autogas.
Refineries do not keep up with the growing global demand, and fuel prices on world exchanges broke away from oil prices. Gasoline and diesel oil are becoming more expensive than the raw material itself, and drivers at distributors have felt this more and more, the analysts at e-petrol.pl stated on Friday.
We expect that this week, in comparison to last week, prices may increase by as much as several dozen groszy in some extreme situations – said in an interview with TVN24 Jakub Bogucki, an e-petrol market analyst.
According to the expert, during the summer holidays, “there is no sign of a downward correction”, and higher prices of PLN 7.30 or PLN 7.40 for gasoline will become a standard.
“Unfortunately, it should not surprise us, taking into consideration the global uptrend. It is not our Polish specificity, and the problem is wider”, added Bogucki.
According to the analyst, the main reason for the increase is what is happening on the international market as a consequence of the Russian attack on Ukraine.
“We are talking, more and more as an international community, to cut ourselves off from Russian oil. In addition, it is known that the oil market reacts to this with price increases, and oil already costs almost $ 120”- explained Jakub Bogucki.
“Then there are currency issues, problems related to the scarcity of the amount of oil in the world markets, which is not produced in sufficient quantities. And it is not expected that these deficiencies will be able to be filled in the near future. All this is driving the high prices at stations,” explains an e-petrol analyst.