Fuel prices: corporations collect “crisis profit”

Created: 04/11/2022, 08:28

By: Simon Mones

Fuel prices have increased significantly since the Ukraine war.

The oil companies in particular benefit from this thanks to rich "crisis profits".

Berlin – The Russian attack on Ukraine has caused fuel prices to rise significantly worldwide.

In Germany, new record values ​​and prices of over two euros were reached several times.

But actually, diesel and petrol shouldn't have been so expensive, as reported by 24auto.de.

A study by the Hamburg energy expert Steffen Bukold for the environmental protection organization Greenpeace shows that Europe's mineral oil companies and gas station operators have used the war in Ukraine to increase their margins.

The drastic increase in diesel and petrol prices brought in additional gross profits of 3.3 billion euros for the corporations.

Fuel prices: corporations collect “crisis profit”

According to the unpublished study, which was previously available to the “Spiegel”, the mineral oil companies generated a so-called “crisis profit” of an average of 107 million euros per day – per day!

In Germany, the additional income is particularly high.

In March, fuel prices were at times well above the 2 euro mark.

Also because the oil companies used the war to increase their margins.

(Iconic image) © blickwinkel/Imago

An average of 38.2 million flowed into the coffers in Germany.

France (13.3 million), Italy (12.5 million), Spain (7.6 million) and Austria (4.3 million) follow.

The oil companies benefited in particular from the significant increase in diesel income.

According to the Greenpeace study, the average “crisis profit” here was 94 million euros per day.

In the case of petrol, however, there were “only” 13 million.

In Germany, diesel is now even more expensive than Super E10.

Fuel prices: According to Greenpeace, corporations are increasing margins

The figures of the Greenpeace study are based on a comparison of crude oil, refinery and gas station prices.

According to this, the price of crude oil for the North Sea variety Brent rose by an average of 19.4 cents per liter by March 22nd.

However, more than 30 cents were added to the refinery price for diesel, and at the pump it was even an average of 36.5 cents more.

Refiners charged 20.5 cents more for gasoline, resulting in an average price increase of 26.7 cents per liter at the pump.

In order to determine the crisis profit, the quantities of the respective types of fuel sold were multiplied by the additional margins.

The study also assumes that the additional gross profits of 3.3 billion euros will also lead to similarly high increases in company profits.

The refineries would also have to cope with higher costs for the natural gas consumed, although Russian crude oil is significantly cheaper than the North Sea sorter Brent on which the calculation is based.

The reason: Russian oil is currently being traded at significant price discounts.

Fuel prices: Greenpeace demands new tax – because of “crisis profits”

In order to relieve motorists, the federal government is planning a temporary tax cut of 14 cents per liter of diesel and 30 cents per liter of petrol.

However, since the fuel prices are already below two euros in some cases, the Greens are calling for this to be avoided.

In addition, it could happen that the prices at the pump do not fall to the same extent and the mineral oil companies continue to increase their margins.

“The oil industry has been enriching itself for decades at the expense of the climate and our future.

Now it's becoming apparent that the oil companies are shamelessly ripping us off in the middle of a terrible war," Martin Kaiser, Executive Director of Greenpeace Germany, told Der Spiegel.

The environmental protection organization is therefore demanding a new tax from the European governments, which is intended to skim off the profits from the crisis.

The revenue from this levy should then benefit socially disadvantaged households in order to relieve them of the rising energy costs.

The farewell to the internal combustion engine must also be accelerated.

Here, Greenpeace has set 2028 as the target, the previous plans of the EU Commission only envisage a ban on approval from 2035.

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