Was the German fuel discount passed on to consumers?

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In this article, I analyze whether German gasoline stations passed on the gasoline tax reduction to consumers. I use a difference-in-differences approach with France as the control group, as well as data for all countries in the European Union. The German fuel discount was in effect from June to August 2022. As I am the first to use complete French and German high-frequency data for the entire treatment period, I can examine how the pass-through of the tax cut evolved over time, varied for different brands, and in various geographic regions. I find a substantial variance in pass-through rates over time and space. On average, the pass-through of the fuel discount was very high but remained incomplete for all fuel types. The pass-through rates were systematically lower in rural regions and in the south of Germany.
Original languageEnglish
Article number107843
JournalEnergy Economics
Volume138
Number of pages15
ISSN0140-9883
DOIs
Publication statusPublished - 10.2024

Bibliographical note

Publisher Copyright:
© 2024 The Author

    Research areas

  • Pass-through, Gasoline market, Tax reduction, Fuel taxes, Petrol prices
  • Economics