In order to try and bring down the rising cost of fuel in Germany, the federal government has arranged for tax on petrol and diesel to be cut from the beginning of June. However, petrol station operators have warned this could lead to bottlenecks in the short term.

German government to introduce fuel tax cut from June

Since the Russian invasion of Ukraine, Germany has been hit hard by the soaring cost of energy. The German government has taken steps to rectify this by introducing a 9-euro public transport ticket and slashing tax on motor fuels.

From June 1, the tax burden will fall by 29,55 cents per litre of petrol and 14,04 cents per litre of diesel. The tax cut is valid for three months. However, petrol station operators are warning that bottlenecks could occur. "A high demand from motorists will meet a low supply," said the chairperson of the Federal Association of Free Gas Stations, Duraid El Obeid.

Fuel supply in Germany expected to take a hit

The significant reduction in energy prices, brought on by the tax cuts, will pose a “double challenge”, according to the general manager of the Fuels and Energy Association (En2x), Christian Küchen. Essentially, fuel supply is going to be hit on two fronts: first, fuel suppliers will look to sell off as much as their stock before June 1, so they can sell the more expensive fuel before it becomes cheaper.

Then, after June 1, it is expected that drivers will flock to petrol stations to fill up their tanks at a significantly lower price. "Therefore, temporary bottlenecks at the stations cannot be completely ruled out," Küchen said. Wolfgang Schuldzinski, the head of the consumer advice centre in North Rhine-Westphalia, has called on motorists to leave some fuel in their tanks in the run-up to June 1. “Because bottlenecks are imminent on June 1, nobody should run their tank almost completely empty before then," he said.