The petroleum industry has warned of supply shortages over the holiday weekend due to the details of the planned reduction in mineral oil tax on May 1st. This year, May Day falls on a Friday, and delivery options will be severely limited over the following weekend, the Federal Association of Independent Petrol Stations and Independent German Petroleum Traders (BFT) explained on Monday. If traders were to fill their tanks beforehand, they would have to pay the old tax rate, which they would not be able to recoup from sales.
“For a secure supply, gas stations would actually need to have full tanks by May 1st,” explained BFT Managing Director Daniel Kaddik. “However, they will be left to absorb the high energy tax included in the fuel costs without any compensation.” The association is therefore demanding that the tax cuts be postponed at least until the Monday after the holiday weekend. Ideally, in their view, there would be some form of tax compensation.
Otherwise, the BFT (German Association of Gas Stations) warns of “logistical disruptions and potential supply shortages.” This is because gas stations are expected to try to avoid tax losses and keep their inventory low before the deadline. “Politicians are fueling expectations of immediate price drops, but they aren’t fully considering the realities of the supply chain,” criticized Kaddik.
Last week, the leaders of the center-right/center-left coalition presented relief measures to address the energy crisis resulting from the Iran-Iraq War. These measures include the option for employers to pay a tax- and contribution-free bonus of €1,000, as well as a fuel tax rebate. The plan is to reduce the mineral oil tax on gasoline and diesel by 17 cents per liter for two months, starting May 1st. The Bundestag is scheduled to pass this legislation on Wednesday.
AFP translated by Blackout News