Distributor Tax Cuts: Why Are Prices Still Rising? – Business

– From June 1, fuel at the gas station should be cheaper. The ADAC noted that while prices have fallen, they are now rising again. In addition, corporations do not transfer the full tax reduction.

The temporary reduction of the energy tax to the European minimum has been in force for three days. In the native language, this is simply called a tank discount. This is to reduce the financial burden on drivers in Germany.

According to an assessment by the General German Automobile Club (ADAC), drivers could largely take advantage of the tank discount on the first day: “On Wednesday June 1, the average price of the Super E10 in Germany was € 1,878 per liter, compared to the day before, before the discount was applied. , down 27.3 cents. ” In the case of diesel, a liter cost 1,928 euros on average, which is 11.6 cents cheaper. However, if the tax cut were to be passed on in full, the Super E10 would have to be another eight cents cheaper and the diesel fuel about five cents cheaper.

However, fuel prices rose again on Thursday 2 June. According to the ADAC, the price of the Super E10 rose by an average of 1.8 cents to 1.896 euros per liter compared with the previous day, while diesel increased by 2.4 cents to 1.952 euros. According to smart-tanken.de (around noon), the cheapest liter of diesel at a free gas station in Rohr is € 1.90 on June 3, right at the start of Pentecost, but the Bavarian average is € 1.95. gasoline costs an average of 1.93 euros, E10 1.89 euros.

“The price increase observed cannot currently be attributed to developments in the oil price or the dollar / euro exchange rate. You get the feeling that the oil industry is using the coming wave of travel to keep prices higher, says Simon Hiller, a spokesman for ADAC Nordbayern.

Prices rose prior to June 1

The ADAC also found that fuel prices had already risen enormously in the days leading up to the tax cut: E10 gasoline cost € 2.09 on 27 May and € 2.15 on May 31; for diesel, the jump was lower but still noticeable, from € 2 on May 27 to € 2.05 per liter on May 31.

This is also due to the fact that companies producing mineral oils currently earn a lot on fuel. Analysis compare.org According to the report, the premium margin for diesel, which also conceals oil companies’ profits, has more than doubled at a diesel price of EUR 2.20 compared to EUR 1.50, while taxes only slightly increased or even decreased proportionally.

Economy: Corporations can benefit from tax cuts

Economics Monika Schnitzer fears that the oil companies may achieve significant profits from the fuel tax reduction despite falling prices at gas stations. She said this in an interview with General of Augsburg: “Based on the experience so far, especially with the VAT reduction in 2020, I believe that the risk is high,” said the economist. “Even if a higher percentage of the tax cut is passed during this time than it was two years ago, the additional profit for companies due to an incomplete carry-over in absolute euro amounts could still be very high.

According to her calculations, oil companies would halt a 40 percent tax cut from a VAT cut in summer 2020, said Schnitzer, a member of the German government’s Advisory Council. This time, however, gas stations were closely watched.

According to the ADAC, fuel prices are generally too high, regardless of the discount on tanks. In addition to tax cuts, the automobile club sees potential for significant price reductions. The CEO of ADAC Transport, Gerhard Hillebrand, announced that further price changes will be closely monitored.

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