Fuel tax rebate only partially passed on to consumers: Ifo Institute

The German government's fuel tax rebate, implemented from May to June, only partially reached consumers, with diesel users benefiting the least, according to an analysis by the Ifo Institute. Economists calculated that only an average of 12 cents per liter of the diesel tax reduction was passed on to drivers by June 25, falling short of the 16.7 cents decrease.

In contrast, Super E5 and Super E10 gasoline prices reflected the tax cut more closely, with an estimated pass-through of 17 and 16 cents per liter, respectively. Florian Neumeier, deputy head of the Ifo Institute's public finance division, stated that the fuel tax rebate was "almost fully passed on to drivers" for premium gasoline.

Fuel prices are expected to rise again in early July with the expiration of the rebate. The Ifo Institute noted that future fuel price trends will depend on oil price developments, although recent drops in oil prices had previously led to falling fuel costs.