Fuel prices hike outpaces inflation in Germany

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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 in Germany only grew 2.0 per cent during the same time, according to Destatis.

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

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

The development of crude on the 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 doubled compared to the same month in 2020 and already reached pre- levels.

At the beginning of the pandemic, crude had fallen sharply due to low demand across 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).