Ukraine war: fuel prices rise drastically - What are the effects?

Created: 07/03/2022, 16:36

By: Tanja Koch

Anyone who wants to save money and lives in southern Germany drives across the border to the neighboring country to fill up.

(Iconic image) © Felix Kästle/dpa

Refueling is more expensive in Germany than ever before.

The record prices for fuel affect not only consumers, but also companies.

Kassel – Refueling is currently more expensive than it has been for a long time.

The high prices for petrol in Germany are not only causing anger and frustration at the pumps for drivers.

Companies are also threatened with additional burdens, and experts also expect more tank tourism.

The rise in petrol prices due to the Ukraine war had already become apparent some time ago.

As the ADAC announced on Monday (March 7th, 2022), diesel was even more expensive than Super at the weekend in Germany.

According to ADAC, a liter of Super E10 costs an average of 1.965 euros.

Diesel was even two cents more expensive than Super and rose to 1.984 euros.

"It's actually atypical of the season, but apparently people are currently buying heating oil because they don't know how it will be next winter," said an ADAC spokesman in Munich with regard to the Ukraine conflict *.

High fuel prices: Diesel more expensive than petrol – ADAC expects tank tourism

Because fuel prices are climbing to record highs in Germany as a result of the Ukraine war, the ADAC also expects more tank tourism – especially on the border with Austria.

A spokesman for the ADAC Südbaden in Freiburg told the German Press Agency (dpa) that the trend towards tank trips to the neighboring country would increase.

The ADAC has not yet been able to name current figures.

Specifically, it is about the border areas between Germany, Austria and Switzerland. 

The price differences are usually mainly due to taxes and duties.

In Austria, too, prices would rise because of the war in Ukraine, so that the ratio between the costs in the two countries would change little, according to the ADAC.

The more fuel costs in Germany, the more attractive it becomes to drive to petrol stations abroad in the border regions.

War in Ukraine increases fuel prices: refueling is cheaper at these times

However, tank tourism is not worthwhile, especially for people who do not live on the border.

The following applies to them during the Ukraine war, but also apart from that: if you fill up at certain times, you save.

The ADAC, for example, explains that prices are particularly high in the early morning, which fluctuate and decrease steadily over the course of the day. 

Refueling between 5 a.m. and 8 a.m. is therefore not recommended.

Between 6 p.m. and 10 p.m., on the other hand, car owners could save.

The reason for the price fluctuations is the competition between different providers who undercut each other.

For this reason, it is also advisable to use apps to compare the fuel prices of the various gas stations.

In view of the Ukraine war, Söder is promoting reduced VAT on petrol

Politicians are also reacting to the high fuel prices.

CSU leader Markus Söder has accused the federal government of acting “half-heartedly” on the subject of sharply rising energy prices due to the Russian war of aggression in Ukraine.

In the event of an expansion of the economic sanctions imposed because of the war on Russian oil and gas exports, Söder demanded a precise crisis concept from the federal government.

This would have an even greater impact on prices. 

He also called for a reduction in VAT on petrol.

The rate must be reduced “as soon as possible” from 19 to seven percent, said the Bavarian Prime Minister on Monday (March 7th, 2022) before a meeting of the CSU executive board in Munich.

Overall, an "immediate brake on energy prices" is necessary, especially in the area of ​​fuels.

He also brought up a temporary reduction in VAT to zero at EU level.

Before the CSU board meeting on Monday, the head of the CSU state group in the Bundestag, Alexander Dobrindt, joined the calls for a temporary reduction in VAT on petrol.

It is about a "clear signal against the enormous price jumps," said Dobrindt in Munich in a joint press statement with Söder.

The left made a similar statement: "Two euros and more are unacceptable and require immediate countermeasures from the federal government," said parliamentary group leader Dietmar Bartsch of the German Press Agency.

Mobility must not become a luxury good.

Bartsch called for a reduction in VAT to seven percent and a noticeable reduction in energy tax on fuel.

"It cannot be explained to anyone that 100 billion euros are available for the Bundeswehr in a night-and-fog operation, but there is hardly any willingness to effectively relieve the burden on the citizens."

Increased fuel prices due to the Ukraine war are also having an impact on companies

Taxi drivers and freight transport are also suffering from the increased petrol prices.

According to the MDR, they are often unable to pass on or pre-finance the increased expenses directly.

"The sharp rise in fuel prices is an absolute disaster for our member companies," quotes the MDR Dirk Engelhard, spokesman for the Federal Association of Road Haulage, Logistics and Disposal (BGL).

In the trade, it currently looks relatively unproblematic.

The problem is that some companies have agreed a price escalation clause with their clients.

If the price of diesel rises, so too does freight revenue.

"However, these mechanisms usually only take effect after a delay of three to four months, and in the meantime the higher fuel prices have to be pre-financed by our member companies," he explains.

For this reason, the BGL calls for the introduction of commercial diesel, which transport companies can buy at reduced prices.

(tk with AFP/dpa)