Surging fuel costs across certain regions of Europe are forcing an increasing number of consumers to drive to neighbouring countries in search of price relief.
In Germany, for example, the price of gasoline has skyrocketed to almost $2.30 per litre, which translates to approximately $23.20 more to fill up a vehicle compared to neighbouring countries such as the Czech Republic, Austria, or Poland. Although it may seem unconventional, driving across the border to fill up is worthwhile for a number of drivers, especially since the distances are relatively short.
But, with prices still in the midst of moving higher— particularly as the winter season approaches— some Germans are willing to drive even further for cheaper fuel. “Driving across the border just to refuel is particularly worthwhile if the price differences are high and the distances are very short,” one driver explained to RT News.
Prices for natural gas, electricity, coal, and oil have risen to record-highs over the past several months, as the reopening of major economies from the Covid-19 pandemic has sparked a sudden surge in global demand for commodities, further depleting natural gas storage levels across Europe. To further add to the strain, investments in the energy sector have dried up, as markets have instead allocated capital into ESG-aligned industries.
The factors are expected to become even more pronounced, not only in Germany, but also across the rest of Europe. According to Germany’s gas station trade association ZTG, the sharp acceleration in fuel prices is being exasperated primarily due to taxes and duties. With Germany in the midst of forming a new government coalition, the subject of excess fuel taxes amid a global energy crisis is certainly going to be the focal point of the country’s energy policy, especially as some argue that tax cuts on petrol are the only way to provide price relief for struggling consumers.
Information for this briefing was found via RT News. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.