Germany cuts fuel tax, drawing Danish motorists across the border

Germany has cut taxes on petrol and diesel until the end of the year, lowering prices by about 1.30 kroner per litre and bringing heavy traffic to filling stations near the Danish border, DR reports.

At around 11 a.m., unleaded 95-octane petrol cost 14.58 kroner per litre in Germany, compared with 17.39 kroner in Denmark. Diesel was priced at 15.40 kroner per litre in Germany and 18.69 kroner in Denmark.

Holger Armonies, a doctor at Hospital Sønderjylland in Aabenraa, regularly shops in Flensburg but made the trip this time specifically to buy cheaper fuel. Although his tank was only half empty, he said he saved about 150 kroner.

The German tax cut has raised concern among Danish fuel retailers near the border. Claus Møller Sørensen, sales manager at OK Mobilitet, which operates filling stations in the area, said fuel sales are highly sensitive to price and that some business could shift across the border.

FDM consumer economist Ilyas Dogru said filling up in Germany could pay off for people living near the border and hauliers who use large amounts of fuel. Meanwhile, border-shopping group Fleggaard expects lower fuel prices to bring more Danish customers to its stores. Marketing director Jacob Gjørtz said the company had seen this happen when fuel was significantly cheaper in Germany.

Germany also reduced its energy tax for two months in May. The current measure will remain in place until the end of the year.