Increase in fuel prices observed in Germany, according to ADAC, with petrol and diesel costing 0.7 cents more
The German government is exploring the implementation of a windfall tax on oil and gas companies as one of several measures to address the rising cost of living. This controversial move, if enacted, could potentially generate billions of euros in revenue for the government.
Currently, the price of a barrel of Brent crude oil is hovering around 68 US dollars, a slight increase compared to before. However, the weaker US dollar against the euro has somewhat dampened the increase in oil prices. The price of diesel in Germany stands at 1.589 euros per liter, while gasoline (Super E10) is priced at 1.667 euros per liter. These prices represent a 0.7 cent increase per liter compared to the previous week, marking a slight rise in fuel prices.
The proposed windfall tax would target the high profits of oil and gas companies due to the recent increase in oil prices. The tax would apply to the profits made by these companies above a certain threshold. The government is also considering using the revenue from the windfall tax to alleviate the burden on consumers.
The implementation of the windfall tax would be a first for Germany. The German economy minister, Robert Habeck, has confirmed that the government is in discussions with oil and gas companies regarding the implementation of the tax. However, the measure has been met with criticism, with some arguing that it could discourage investment in the oil and gas sector.
It's important to note that the current influence on oil prices in Germany is primarily driven by global market forces, including the policies of major oil-producing countries and geopolitical events. The German government indirectly impacts energy prices through subsidies, tax policies, and energy regulations aimed at reducing costs for consumers and businesses.
The price of Brent crude oil has been relatively stable since early August, trading between 65 and 70 US dollars. The German government is weighing the potential benefits of the windfall tax against its potential drawbacks as it seeks to address the high cost of living and find a balance that benefits both consumers and the oil and gas industry.
[Photo credit: dts Nachrichtenagentur]
