Tuesday, October 19, 2021
Because of the record diesel price
Mittelstand warns of “real economic crisis”
The chief economist of the Federal Association of Medium-Sized Enterprises, Hans-Jürgen Völz, warns of profound consequences for the economy and consumers due to the current diesel price. The Corona crisis could be followed by an economic crisis in a few months that “endangers prosperity”.
In view of the new record high for diesel prices, German SMEs have warned of drastic consequences for the economy and consumers. At the end of the year, the corona crisis “threatens to be seamlessly replaced by a veritable economic crisis, while other European countries are recovering economically around us,” said Hans-Jürgen Völz, chief economist of the Federal Association of Medium-Sized Enterprises (BVMW), the newspapers of the Funke media group .
“The explosion in fuel prices is putting a massive strain on the economy, endangering jobs, growth and prosperity,” said Völz. It is already evident that the additional costs for transport, heating and materials passed on to consumers with a time lag will lead to higher wage demands. “From the point of view of the middle class, the mineral oil tax should be reduced temporarily and the commuter allowance increased noticeably.”
The diesel price had risen to an all-time high on Sunday. According to the ADAC, drivers had to pay a nationwide average of 1.555 euros per liter, which is more than ever before. The price of gasoline also rose sharply.
The price of crude oil and the exchange rate between the dollar and the euro are decisive for the development of fuel prices. The price of crude oil is currently lower than it was in 2012, but the dollar is significantly stronger than it was nine years ago. That makes oil imports to Europe more expensive.
The CO2 tax introduced at the beginning of the year also plays a role, which, according to ADAC information, has an impact of around seven to eight cents per liter on refueling this year. In the case of diesel, the rising demand for heating oil in autumn also increases the price at the pumps.