Current calculations by the Ifo Institute reveal that the fuel discount implemented by the Federal Government on October 1st is not being fully passed through to the pumps. According to Florian Neumeier, Deputy Head of the Ifo Center for Financial Science, the retail stations passed on approximately 15 cents of the per-liter tax reduction for diesel during the first five days. Similarly, for E5 gasoline, the average transfer was around 16 cents, and for E10 gasoline, it was 15 cents. Neumeier noted that while the discount was fully implemented on October 1st, the transfer remained incomplete over the weekend.
Furthermore, Ifo expert Christian Gréus stated that, given the current shortage of fuel supply, this measure does not contribute to consumers reducing their consumption of diesel and gasoline. Gréus also commented that the incentive package is poorly targeted; households with lower incomes, smaller cars, and low mileage rarely benefit from this relief package.
Neumeier added that instead of subsidies, usage should be limited, and a higher price would offer a stronger incentive for consumers to change their habits. He also warned that the discount distorts purchasing decisions, leading, for instance, petrol car owners to become overly dependent on the Golf region-a dependency that the price structure should also reflect.
