Fuel discount passed on?
Evidence of free-rider effects at oil companies
07/16/2022, 01:50 am
It has long been a matter of debate whether the tank discount will be passed on to consumers. The Bundeskartellamt has evidence that mineral oil companies have achieved higher profit margins in recent months. A concrete assessment will probably only be made with a delay.
The Bundeskartellamt has evidence that mineral oil companies have achieved higher profit margins in recent months. “With regard to the fuel markets, the first data sets from the Federal Cartel Office show that the gap between crude oil and refinery sales prices has increased significantly,” said the Federal Ministry of Economics in response to a request from the left, according to a preliminary report by “Spiegel”. According to the ministry responsible for competition control, this could indicate antitrust violations. Structural competition problems could also be considered as an explanation for the price increases. A sector inquiry should clarify this.
It has long been a matter of debate whether the tank discount will be passed on to consumers. However, expected with results according to “mirror” cannot be expected before it expires at the end of August.
“Due to the limited observation period available, a well-founded or even conclusive assessment of the transfer of the energy tax reduction to end consumers is not yet possible,” it says in the answer of the ministry upon request. Therefore, so on, it is not yet possible to determine which various causes have contributed to the observable price changes.
Left MP Victor Perli criticizes this. “The Federal Cartel Office is incapable of stopping rip-offs at gas stations,” he said. “The ongoing sector inquiry will only be completed long after the end of the tank discount.” Perli calls for a fuel price cap similar to that in Slovenia, where a liter of petrol or diesel can only cost two cents more than in wholesale.