Fuel discount: Tax cut did not fully reach consumers in August

To ease the burden on car drivers, the German government reduced taxes on petrol (- 35 cents/liter) and diesel (- 17 cents/liter) from June to August this year. But how much of the tax cut reached consumers is is discussed controversially. 

Researchers at TU Dresden compared German prices with those in neighboring European countries. They can show that German consumers actually paid less per liter of petrol and diesel on average between June and August than they would have paid without a fuel discount.

However, in August in particular, the discount turned out to be less than the policy had envisaged. "At the beginning of June and in August, the fuel discount was not passed on completely.", says Dimitria Freitas from the Faculty of Business and Economics at TU Dresden. 

The study was published in the journal "ifo Dresden berichtet" on 18.10.2022. 
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Contact:
Dimitria Freitas
Faculty of Business and Economics
Chair of Economics, esp. Economic Policy and Economic Research
Phone: +49 351 463 34043
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