Fuel Discount at the Pump: Ifo Institute Criticizes Incomplete Pass-Through

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The fuel discount has launched – but apparently not all of it is reaching drivers at the pump. Gas station operators are only partially passing on the state tax relief to drivers, according to the Munich-based Ifo Institute. This is reported by the Frankfurter Rundschau.

What is behind the criticism?

The Munich-based Ifo Institute observes price developments at German gas stations and regularly assesses economic policy relief measures. When researchers now denounce the incomplete pass-through of the fuel discount, they are hitting at the core of the measure: the discount is supposed to reach drivers – not seep away on the way there.

What this means for you at the pump

If the tax relief doesn't fully reach you, you may end up paying more than the relief actually provides for. The available report does not specify how large the difference per liter actually is. What you can take away: gas station prices are now under particular scrutiny – from researchers, the media, and politicians.

What is known – and what is still missing

The Frankfurter Rundschau picks up on the Ifo assessment. The available report does not provide specific figures on how many cents per liter are actually missing at the pump. This leaves open, for now, how big the gap between the tax relief and the pump price really is – and how much it diminishes the effect of the relief.