Oil Industry Confirms Tax Cut Passage While Warning Against Predictable Fuel Prices
Politics

Oil Industry Confirms Tax Cut Passage While Warning Against Predictable Fuel Prices

Alexander von Gersdorff, the spokesperson for the “Fuels und Energie” trade association, has announced that the announced fuel discount will be fully passed on to consumers. Speaking on Friday, von Gersdorff stated that the tax reduction will be passed through “one to one” at the gas stations.

However, he cautioned that spending little time on this positive news, the overall cost of fuel remains subject to fluctuations in the global market prices for gasoline and diesel. “Therefore, it is possible that the price at the gas station on May 1st and beyond could be higher or lower than the 17 cents per liter” he warned.

Von Gersdorff also directly addressed critics who suggest that the industry has failed to pass on tax cuts in the past. Challenging this claim, he reminded the public that during 2022, even after the start of the war in Ukraine, the full fuel discount was maintained throughout that period.

The spokesperson further clarified a recent misunderstanding regarding price increases, stating that past global market price movements-which affect the wholesale costs for filling stations-were misinterpreted as leading to inevitable future price hikes. He insisted that this was not the case and would not be. He confirmed that the 17-cent tax reduction is automatic; essentially, the industry records 17 cents less in state payments, and this reduction is reflected in the pump price.

Regarding politically proposed measures, von Gersdorff expressed deep skepticism about a so-called “superprofit tax” demanded by the SPD. He explained that the refineries themselves are currently in a very difficult position financially. They must purchase oil not only at the official exchange rate but sometimes for up to 50 percent more in the short term, making the profitability situation unclear. Despite this, he reiterated the industry’s main goal: sustaining continuous supply of gasoline, diesel, heating oil, and aviation fuels.

Addressing local fears of potential shortages, von Gersdorff added that, relative to kerosene, the current supply situation in Germany is stable, and they aim to maintain this status to guarantee full supply even during the summer holidays.