Germany: Diesel price hits new record high, gasoline falls slightly

Berlin, 18 Sep (KUNA) -- Data released in Germany on Friday showed that diesel prices at fuel stations continued to rise, hitting a new record high, with the average price per liter reaching 2.471 euros, an increase of nearly two cents compared to the previous day.

Data issued by the German Automobile Club (ADAC) also indicated that the price of premium E10 gasoline fell slightly after recording several consecutive record highs, dropping to 2.308 euros per liter.

The German government, which is suffering from declining approval ratings in opinion polls, is seeking to alleviate the burden of rising prices on drivers. However, the Christian Democratic Union (CDU) and the Social Democratic Party (SPD) remain divided on how to implement such measures.

Vice Chancellor and Finance Minister Lars Klingbeil, a member of the SPD, stated in a press release that the government is looking for solutions and wants to send a quick and clear signal to fuel stations. Meanwhile, officials from the CDU discussed the possibility of a reduction of between 21 and 25 cents per liter starting from the beginning of next October.

The disagreement between the two parties centers on the SPD’s proposal to impose a cap on fuel prices and an EU-wide tax on the additional profits of oil companies. The CDU rejects these proposals and instead favors reducing the value-added tax (VAT) on gasoline and diesel from 19 percent to 7 percent.

The rise in fuel prices comes against the backdrop of the war in Iran and its repercussions on inflation and energy market prices, which directly impact transportation costs for drivers and businesses.

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