Diesel prices are rising more strongly than in Europe: TMV calls for government intervention.

The latest escalation in the Middle East has set energy markets worldwide in motion. Diesel prices in Germany have risen noticeably – significantly stronger than in neighboring countries. Within a few days, the price per liter of diesel here rose by up to 30 euro cents, an increase of around 15 percent. Across Europe, the rise was comparatively modest at three to five percent.

Diesel prices are rising as a result of the Iran war. In Germany, however, the rise is significantly stronger than in other EU countries.| Photo: TMV
Diesel prices are rising as a result of the Iran war. In Germany, however, the rise is significantly stronger than in other EU countries.| Photo: TMV

"The conflict in the Middle East explains rising crude oil prices — but it does not explain why diesel in Germany is three to four times more expensive than in the rest of Europe," says Thomas Kroker, president of the TMV association.

The development is hitting passenger-transport companies particularly hard. Taxi, rental-car and bus operators rely on diesel and, in the short term, cannot switch to alternative drives nor fully pass on the cost increases to their passengers.

Kroker: Too high a share of taxes

Kroker speaks of a 'combination of geopolitical crisis, lack of political damping and additional national burdens'. A key factor is the high government share of the diesel price: energy tax, CO2 price and value-added tax act as accelerators of price spikes in Germany. By contrast, other EU member states relieved or absorbed price increases.

The TMV therefore calls for a three-stage approach: An immediate review of the diesel price development by the Federal Cartel Office, the temporary suspension of the CO2 levy on diesel for commercial passenger transport, and a political crisis response modeled on the European example to prevent competitive disadvantages for German companies.

TMV calls for stabilizing diesel prices

“Mobility is part of the public provision of essential services,” emphasizes Kroker. “If policymakers do not act in geopolitical crises, they jeopardize not only businesses but also the population’s supply – especially in rural areas.”

The association expects short-term measures from the federal government to stabilize diesel prices and protect the systemically important passenger transport from further harm.

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