Gasoline prices continue to rise: Another all-time high reached at gas stations

afp | In view of the rising fuel prices, the discussion about relief for drivers is back in full swing: the demands range from a new refueling discount to a reduction in electricity tax and an excess profits tax. Federal Economics Minister Katherina Reiche (CDU) spoke out in favor of direct payments to low-income earners. The petroleum industry does not expect prices to normalize until next year.

On Monday, the price for Super E10 reached another all-time high, with a daily average cost of 2,286 euros per liter, as the ADAC announced on Tuesday. That was 1.3 cents more than the day before. The price of diesel rose by 0.8 cents to 2.412 euros per liter, which was only 3.4 cents away from the record set in April. The price of heating oil also continued to climb.

One reason for the rising prices is the high price of crude oil and damaged refineries in war zones. In view of the increasing tensions in the Gulf region, the price of oil continued to rise, although not as strongly as in the previous days. A barrel of North Sea Brent cost $107.55 on Tuesday morning, a barrel (159 liters) of US WTI cost $103.24.

The decisive factor for the price development is “further development, especially in the Middle East,” said the spokesman for the Fuels and Energy Association, Alexander von Gersdorff, to the Rheinische Post. “If there were a peace agreement, fuel prices would also gradually calm down.” But even then it will take “well into 2027” for the market to normalize completely. This is because “a lot of refining capacity has been lost”.

The CDU consumer protection politician Sebastian Steineke called for another temporary reduction in energy tax to the European minimum in the Handelsblatt - during the fuel discount in May and June, the energy tax was reduced by 17 cents per liter including VAT. Steineke also suggested reviewing the CO2 price. It is levied on climate-damaging carbon dioxide and makes fossil fuels more expensive.

SPD General Secretary Tim Klüssendorf reiterated his party's call for a fuel price cap and an excess profits tax in order to skim off the state's "excessively high profits from the oil companies". The SPD transport politician Isabel Caldemartori also promoted both instruments. Although Germany cannot isolate itself from world market prices, the fluctuations in fuel prices in this country are “implemented particularly violently and particularly quickly,” she told Bayerischer Rundfunk.

The energy expert at the RWI Leibniz Institute, Manuel Frondel, warned against the introduction of a fuel price cap. "Politicians should not try to limit price increases at the pump with a price cap. That only appears to be a help," he told the Rheinische Post. He referred to the example of Hungary in 2022: "In response to the price cap, there were fuel shortages at gas stations, long queues, a limit on the number of tanks and ultimately many gas stations went bankrupt. In the end there were fewer gas stations and therefore less competition."

The deputy parliamentary group leader of the Greens in the Bundestag, Andreas Audretsch, proposed a reduction in the electricity tax to the European minimum - that means a billion euros in relief, "and that goes directly to people's wallets," he told the broadcasters RTL and ntv.

Minister Reiche rejects a reduction in electricity taxes: That “doesn’t help the person standing at the gas station,” she told the broadcasters RTL and ntv on Monday. She also categorically rejected any subsidization of fuel prices such as the fuel discount. “Together we have decided in the coalition that there is currently no financial scope for this.” Direct payments to low-income earners, on the other hand, would be “a way to quickly provide relief”.

Left leader Luigi Pantisano told AFP: “Nothing prevents the federal government from immediately deciding on climate money.” An excess profits tax or a profit margin cap could also “be introduced this week”. The climate money – announced at the time by the traffic light government – ​​is a lump sum payment from the state to all citizens from the income from the CO2 tax.