Was the German fuel discount passed on to consumers?

Mats Petter Kahl

Energy Economics, 2024, vol. 138, issue C

Abstract: 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.

Keywords: Pass-through; Gasoline market; Tax reduction; Fuel taxes; Petrol prices (search for similar items in EconPapers)
JEL-codes: H22 L13 L41 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:138:y:2024:i:c:s0140988324005516

DOI: 10.1016/j.eneco.2024.107843

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