Tax cut triggers growing fuel tourism

Tax cut triggers growing fuel tourism

Poland has seen a significant rise in fuel tourism from Germany since the Polish government reduced the tax on fuel from 23 to 8 per cent. Meanwhile, smaller petrol stations in Germany have come to the brink of bankruptcy.

WORLD FEBRUARY 7. 2022 16:26

In both Berlin and Brandenburg many motorists have decided to refuel in Poland after tax on fuel was cut from 23 to 8 per cent in the neighbouring country. Drivers can fill up their cars for a mere 1.14 euros per litre in Slubice, a town on the Polish-German border. Filling stations have seen record sales for days now, according to Bild. Recently, the number of customers has risen by 20 per cent and we expect twice as many people to come and refuel during the weekends, a petrol station employee told journalists. At the border, authorities warn motorists to expect traffic jams.

The unfolding situation poses a grave business threat, petrol station managers in Germany complained to the tabloid.

„The current situation is a severe blow to pumps in Germany. I’ve already had to change the opening hours because people rarely fill up after 6 pm,”

one petrol station attendant told the newspaper, adding that

the problem is not only that Poland has reduced VAT on fuel, but also that Germany has introduced a tax on carbon dioxide emissions, which has had an affect on German petrol stations.

One litre of Super fuel in Poland is currently around 0.50 euros cheaper than in Germany, she noted. This means that in Poland it is now 25 euros cheaper to fill up a 50-litre tank. And if you also fill up a 20-litre can, you can save an extra 10 euros.

Petrol stations on the German side of the border fear catastrophic consequences, as up to 70 per cent of their customers have been lost to petrol tourism. Meanwhile, the German Automobile Association has reported that the average price of petrol in Germany is at a record high of 1.71 euros per litre, while the price of diesel also hit a staggering new height at 1.64 euros per litre. Fuel has not been this expensive in the country for 10 years.

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germany, petrol station, poland, prices rising