German petrol prices creep back up despite government's fuel tax cut

A few days after Germany's fuel tax discount was launched, fuel prices across the country have stabilized at a level slightly above the starting point.

The ADAC motoring association reported on Monday that the nationwide daily average price for a litre of Super E10 on Sunday was €2.137 ($2.405). That was 2.3 cents more than on Thursday. For diesel, the price was €2.253 per litre - 0.9 cents more.

A three-month reduction in energy taxes came into force last week, aiming to ease the burden on motorists after energy costs skyrocketed following the start of the Iran war.

"This means that part of the initial relief has already been partially eroded within just a few days," the motoring association stated. "Although the energy tax cut has led to a significant drop in fuel prices, the relief is already beginning to fade."

There is currently no explanation for the trend in Super E10 prices, as the oil price and the euro-dollar exchange rate have changed only slightly. "From a consumer's point of view, this renewed price rise is therefore difficult to understand," the ADAC said.

The fact that prices had risen compared with Thursday was also evident at the usual daily low just before the midday spike. While E10 had temporarily been available for less than €2 at many petrol stations a few hours after the tax relief came into effect, on Monday morning it was nowhere to be found.

It is difficult to assess how effectively the tax cut of 16.7 cents per litre is being passed on to consumers. 

The industry association en2x has consistently emphasized that the discount would be passed on in full, while consumer protection agencies and economic researchers have reached the opposite conclusion.