Veba Promises Tax Cut Pass Through but Nopes Not Cheaper Gas

Veba Promises Tax Cut Pass Through but Nopes Not Cheaper Gas

Alexander von Gersdorff, the spokesperson for the “Fuels und Energie” industry association, announced on Friday that the fuel tax reduction would be fully passed on to consumers at the gas pumps. However, he cautioned that the final price remains dependent on how global market rates for gasoline and diesel develop. Consequently, the price on or after May 1st could be higher or lower than the stated 17 cents per liter.

Addressing critics who claim that past tax cuts were not fully implemented, von Gersdorff defended the industry, stating that they fully passed on the fuel rebate even in 2022, following the onset of the Ukraine War, and maintained this full continuation throughout that entire period. He also corrected a previous misunderstanding regarding pricing fluctuations, confirming that earlier changes were not evidence of planned, gradual price increases. According to von Gersdorff, the 17-cent tax reduction happens automatically, meaning the reduced amount is reflected directly in the price at the pump.

In a separate discussion, von Gersdorff expressed skepticism concerning the demand for an “interim profit tax” advocated by the SPD party. He indicated that the industry finds the discussion around such a tax unclear, noting that refineries currently face difficult operational circumstances. He pointed out that refineries must purchase oil not only at official exchange prices but sometimes at rates up to 50% higher. Given this fluidity, the determination of profit or loss is “completely unclear”. Nevertheless, the industry’s core objective remains ensuring a continuous supply of fuel, including gasoline, diesel, heating oil, and jet fuel.

Finally, regarding potential supply shortages, von Gersdorff confirmed that, as of now, there are no perceived bottlenecks in Germany’s fuel supply, and the industry is committed to maintaining full availability indefinitely, including during the summer break.