Fuel prices hike outpaces inflation in Germany

All motor fuel prices in Germany saw above-average price increases and were up 23.3 per cent in April compared to those in 2020, the Federal Statistical Office (Destatis) announced on Wednesday.

Consumer prices as a whole and inflation in Germany only grew 2.0 per cent during the same time, according to Destatis.

“The end of the temporary reduction of value-added tax and the introduction of the CO2 charge have had an upward effect on motor fuel prices,’’ Destatis said.

Since January, fossil fuels in Germany have been charged 25 euros ($30.60) per ton of CO2.

The development of crude oil prices on the global markets also had a strong impact on the price development of fuels in Germany.

According to Destatis, import prices for crude oil in March more than doubled compared to the same month in 2020 and already reached pre-crisis levels.

At the beginning of the pandemic, crude oil prices had fallen sharply due to low demand across global markets.

Destatis noted that low fuel prices in 2020 would lead to very high year-on-year rates of price increases for crude oil at present and in the coming months to (1 euro = $1.22).