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Germany’s Tankrabatt Falls Short at the Pump

Independent monitors and the federal cartel office say weak competition at refinery and wholesale levels is limiting how much of the 16.7‑cent tax cut reaches drivers.

Overview

  • Since the rebate began on October 1, the DIW estimates about 67% of the 16.7‑cent per‑litre cut has reached consumers, with pass‑through narrowing to roughly 9 cents in recent days.
  • The Ifo Institute finds slightly larger pass‑through by fuel type — about 13 cents for E10, 14.7 cents for E15 and 13.5 cents for diesel between October 7–13 — but still short of the full tax cut.
  • The Bundeskartellamt reports that the tax cut has largely reached refineries and wholesalers but not completely, and it says the shortfall is bigger for petrol than for diesel.
  • The fuels industry association en2x rejects foreign price comparisons and says changing costs such as biofuel obligations and Rhine transport problems explain some price moves; DIW’s estimates use France as a comparator because France has no rebate.
  • The measure will cost about €2.5 billion to governments, Germany’s pump prices remain high by EU standards, and motorists lose roughly €1–2 in promised savings on a 50‑litre fill‑up when the full cut is not passed on.