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Rising diesel prices weigh on German road transport

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The German Road Transport Association has warned that the sudden rise in diesel prices is significantly burdening the transport industry, and has asked for government help.

Since the start of the war in Iran, the price has risen by around 40 cents per liter, said Dirk Engelhardt, head of the Federal Association of Road Transport, Logistics and Waste Management (BGL).

With a monthly mileage of ten thousand kilometers and a fuel consumption of 30 liters per 100 kilometers, this results in additional costs of around 1.2 thousand EUR per month for the truck.

In recent years, the average fuel consumption for larger trucks has been between 35 and 40 liters per 100 kilometers.

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For a fleet of 50 vehicles, this amounts to more than 700 thousand EUR per year. 

“It stands to reason that sooner or later this could affect consumer prices,” Engelhardt said.

As diesel prices rise, the transport sector is calling on the government for support. Quick measures that do not involve a lot of bureaucracy are needed to ensure companies' liquidity and maintain supply chains, Engelhardt said.

A cap on the price of diesel would also help limit the burden on businesses and prevent insolvency among small and medium-sized firms. Further measures could include a refund of the CO2 tax on diesel or a suspension of the CO2 component of the truck toll.

It is important that the measures are targeted and reach transport companies directly, Engelhardt believes.

Many companies rely on what are known as diesel floating rates to protect themselves from price fluctuations. These are price escalation clauses agreed in individual contracts that apply both ways.

However, they often take time to take effect and can only provide limited relief from current burdens. 

"Many small transportation companies don't have such protection mechanisms at all, so they are directly affected," Engelhardt said.

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