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Expensive gasoline and heating oil keep the inflation rate high

2021-07-13T11:26:38.482Z

Inflation in Germany weakened slightly in June. However, this does not apply at the petrol station or when ordering heating oil. Even with the current stable electricity price, consumers face hardship.



Inflation in Germany weakened slightly in June.

However, this does not apply at the petrol station or when ordering heating oil.

Even with the current stable electricity price, consumers face hardship.

Wiesbaden - The sharp rise in prices for heating energy and fuels is keeping the inflation rate in Germany at a high level.

With an increase of 2.3 percent compared to May, however, inflation fell slightly in June, as the Federal Statistical Office confirmed on Tuesday.

In the previous five months it had risen and in May, at 2.5 percent, it had reached its highest level in almost ten years.

With a plus of 9.4 percent, the prices for energy products were still well above overall inflation.

Consumers had to pay significantly more at the petrol stations and when filling the heating oil tank.

Heating oil was 42.5 percent more expensive than a year earlier, while fuels were 23.5 percent more expensive.

For natural gas, the statisticians determined an increase of 2.4 percent, the electricity prices remained unchanged.

According to calculations by the comparison portal Verivox, the increase in energy prices burden a model household with an additional 498 euros per year.

For an annual heat requirement of 20,000 kilowatt hours, electricity consumption of 4,000 kilowatt hours and an annual mileage of 13,300 kilometers, a three-person household would have to pay 3971 euros at current prices, 14.3 percent more than a year ago.

One reason for the energy prices that have been rising for months is a so-called base effect: A year ago, crude oil prices collapsed with the outbreak of the Corona crisis due to low demand on the world market.

They have since recovered.

In addition, since January 25 euros per tonne of carbon dioxide (CO2) has been due in Germany that is produced when diesel, petrol, heating oil and natural gas are burned.

“The boom in demand for crude oil triggered by the global economic upswing has literally exploded prices since the bottom of the pandemic. The people in Germany are now feeling that too, ”said Thorsten Storck, Verivox's energy expert.

The price increase for crude oil products could continue if the economic upswing continues, expects Prof. Manuel Frondel from the Essen economic research institute RWI. This is because the development of crude oil prices has a significantly greater impact on fuel and heating oil prices than CO2 pricing. "If the CO2 price should rise to the maximum of 65 euros per ton in 2026, it will not have such a serious impact," said the energy economist. Compared to the level before the introduction of the tax, the price per liter of petrol and diesel would only increase by 20 cents per liter.

According to the Tecson information portal, no relaxation is in sight for heating oil. The dealers expected a strong increase in heating oil orders in autumn, because the customer tanks are currently not very full. In addition, the International Energy Agency IEA issued an urgent warning on Tuesday of the consequences of the dispute between large oil-producing nations that cannot agree on an increase in production. There is a threat of a larger supply deficit with possibly higher fuel prices, said the IEA in Paris.

The price stability for electricity could also soon be over. "I expect that the electricity prices for consumers will rise significantly," said energy expert Frondel. The price of electricity on the exchange has already risen sharply, mainly due to the sharp rise in CO2 prices in EU emissions trading, which have increased tenfold since 2017. "We will see these price increases in consumer contracts in the foreseeable future," said Frondel. dpa

Source: merkur

All news articles on 2021-07-13

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