Only ten cents instead of 16.7 cents: fuel discount sparks controversy

The government cut in the energy tax on fuels, according to Germany's Taxi and Rental Car Association, is not fully passed on to consumers. As the association states, citing analyses by the ADAC and the Ifo Institute, prices would have had to fall by 16.7 euro cents per liter. At the pumps, however, only about ten to 14 euro cents per liter would reach consumers.

In the association's view, this significantly diminishes the intended relief effect. The difference is regarded as profit-taking by oil companies at the expense of taxpayers. For the taxi and rental-car sector, this would therefore intensify the economic pressure.

Regulated tariffs limit room for maneuver

Unlike many other industries, taxi and rental-car companies could not pass on increased costs to their customers at short notice, the report adds. The tariffs are set by authorities and are subject to strict binding. Additional burdens therefore have an immediate impact on the profitability of the predominantly mid-sized businesses.

The association notes that it had warned early about a temporary tax cut without effective oversight. Without transparent price supervision there is a danger that part of the government relief will not reach consumers.

Call for oversight and targeted relief

Against this background, the association calls for strict oversight of pricing by the Federal Cartel Office. The margins of the oil companies must be disclosed without gaps and abusive increases sanctioned.