Fuel rebate shows effect: Fuel prices significantly lower in May

The Monopolkommission and the Ifo Institute continuously monitor price developments. To calculate the effect of the fuel rebate, the price difference between Germany and neighboring France is primarily used.

According to Ifo calculations, the average difference for Super E10 in the period from May 26 to 28 was 18 cents, for Super E5 it was 19 cents, and for diesel, it was only 15 cents. The Monopolkommission determined a reduction of 18.1 cents for E10, 18.8 cents for E5, and 17.9 cents for diesel as of May 31.

Diesel cheaper than gasoline again

As a result, the tax cut for E5 and E10 gasoline grades was fully passed on to consumers by the end of May. In the last week of May, gasoline prices were even slightly below the level that would have been expected with an exact pass-through of the 17-cent reduction.

Since May 16, diesel has also been cheaper than Super E10 again for the first time since the beginning of March. At the beginning of the month, diesel had cost around 9 cents more than Super E10.

Inflation rate decreases

The lower fuel prices also contributed to dampening inflation. The Federal Statistical Office estimated the inflation rate in May at 2.6 percent, down from 2.9 percent in April. The authority attributed the decline, among other things, to the temporary drop in crude oil prices after the war-related increase.

The Monopolkommission is an independent expert body that advises the federal government and parliaments on competition issues. It will continue to monitor price developments at the pumps, especially with a view to the expiry of the fuel rebate.

April had been the most expensive refueling month of the year so far before the decline in May. Consumers can breathe a sigh of relief for the time being, even if it remains unclear how prices will develop after the end of the tax cut.