The government-subsidized fuel discount of almost 17 cents is now being largely passed on to consumers, according to a study by the Monopolies Commission, "after an initial delay." Data from the first week after the discount's introduction indicated this, the commission explained on Tuesday. The price of diesel fell below two euros again over the weekend, and rose slightly at the start of the week.
The federal government reduced the energy tax on diesel and gasoline by 14 cents on May 1st. Including the applicable value-added tax, this results in a tax reduction of 16.7 cents. However, the ADAC (German Automobile Club) in particular criticized the fact that the oil companies only partially passed this tax reduction on to consumers.
The Monopoly Commission confirmed that in the first days after May 1st, the tax cut was indeed not fully reflected at the pump. However, throughout the first week, prices gradually approached full pass-through levels. The commission commented that considerable media and political pressure likely contributed to this development.
On Monday, diesel cost an average of 1.987 euros per liter nationally according to ADAC data, representing a 0.3 cent increase from Sunday. Super E10 gasoline cost 1.974 euros, up 0.6 cents from the previous day.The ADAC stated on Tuesday that simply comparing current prices to those on April 30th might suggest the fuel discount has reached consumers.
However, the organization emphasized that oil prices have dropped from over 110 dollars to 100 dollars per barrel in recent days. Accordingly, declining fuel prices are a logical consequence of falling crude prices.
The Monopoly Commission identified ongoing competition problems at the wholesale level in Germany. The commission compared daily fuel price developments in Germany with those in France and the United Kingdom, finding that prices at German gas stations rose more sharply after the beginning of the Iran war in late February. The reason is that a few integrated corporations control refineries, wholesale operations, and gas stations simultaneously in Germany.
The commission explained that the substantial pass-through of the fuel discount does not contradict these structural issues. Despite high concentration, the gas station market remains the most competitive part of the value chain.
Competition authorities view the fuel discount critically overall due to its high costs for the government, socially unequal relief effects, and failure to address structural competition problems. The commission therefore opposes an extension, as it emphasized.
The energy tax reduction applies during May and June and costs the government 1.6 billion euros. Several politicians have already spoken in favor of an extension should crude oil prices remain high on the world market due to the Iran war.
The Monopoly Commission does not yet want to provide a final assessment of the noon pricing rule that has been in effect since April 1st. However, it initially led to price increases. In the first week after the rule's introduction, fuel in Germany was still more expensive than in France. After approximately one week, the price difference returned to its previous level.
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