German fuel prices fall ahead of scheduled 16.7-cent tax discount
Fuel prices at German petrol stations dropped on Tuesday and Wednesday ahead of a 16.7-cent-per-litre tax discount taking effect at midnight on 1 October.
Falling prices at the pump
According to data from the ADAC automobile club, Super E10 was 4.2 cents cheaper at 10:00 on Wednesday morning compared to the same time on Tuesday, while diesel fell by 3.9 cents. Data from the price monitoring platform Tankerkönig showed that petrol and diesel prices were roughly 5 cents lower than 24 hours earlier, recorded just before the regular midday price rise. On Tuesday, the nationwide daily average recorded by ADAC stood at 2.258 euros per litre for E10 (down 1.8 cents from Monday) and 2.409 euros per litre for diesel (down 1.6 cents).
- Super E10
- 2.258 EUR/l
- Diesel
- 2.409 EUR/l
ADAC attributed the decline partly to easing on international oil markets and existing pricing latitude following elevated price levels in previous weeks.
Implementation of the tax reduction
A tax cut of 16.7 cents per litre on fuel enters into force overnight on Thursday, applying to supplies leaving refineries and fuel storage depots after midnight. The fuels and energy industry association en2x projected that retail stations would pass on the reduction immediately.
The renewed reduction of energy and value-added tax will be passed on from midnight on 1 October without restrictions and surcharges, as in May and June.
Küchen pointed to competition among Germany's 14,000 filling stations as a primary driver of price transmission. ADAC expressed caution regarding the speed of the retail price adjustment.
Prices will drop gradually. We demand a full and rapid pass-through, but there are concerns about windfall effects, meaning the tax discount may not fully reach drivers.
