Fuel prices surge in Germany as tax rebate ends

Germany is experiencing a sharp rise in fuel prices after the expiration of a significant tax rebate, leading to widespread criticism of oil companies. The fuel tax discount, which reduced prices by 16.7 cents per liter, ended at midnight, prompting an immediate and substantial increase at the pump.

According to the ADAC, Super E10 gasoline became 13.4 cents more expensive overnight, while diesel saw an even steeper increase of 15.6 cents. By late morning, prices for E10 averaged 2.15 euros per liter nationwide, and diesel reached 2.11 euros. While a typical midday price increase, known as the "12-hour rule," was observed, its impact was somewhat muted compared to previous days, possibly indicating a slowing of the price hikes.

Consumer organizations and economic watchdogs have voiced strong disapproval of the price surge. The ADAC argues that the tax rebate was effectively withdrawn before its official end, as many gas stations had already factored its expiration into their pricing. They contend that prices should not have risen so sharply on the last day of June, especially since cheaper, tax-reduced fuel was still in tanks. The ADAC stated that further price increases are unjustified and that the current price level is "clearly excessive."

The chairman of the Monopolies Commission, Tomaso Duso, echoed these concerns, suggesting that oil companies exploited the impending end of the tax rebate to increase their profit margins. He noted that the end of the discount was "priced in" by the fuel stations in the days leading up to its official expiration. The industry association en2x, however, defended the price increases as a market-driven response to a surge in demand before the rebate ended.