E-Control is impressive: This is what the fuel price cap brought about

A 10 cent reduction is largely achieved

“The quotations for wholesale fuel prices have fallen, and gas station prices have fallen even more.” In between, you can see a reduction in margins of around 10,5 Cent pro Liter Diesel and 18 Cent pro Liter Super-Benzin. If you deduct the VAT, this results in a reduction in the diesel price that is just below that 10 Cent lies that the government has promised. When it comes to petrol, however, things are going “great” and the 10 cent reduction is even exceeded.

Prices are now significantly cheaper compared to Germany

In order to check the effect of the fuel price brake, E-Control used several calculation models. Compared to Germany (where there are no price-dampening measures) the domestic diesel price was 5 cents/liter higher on March 30th, before the fuel price brake. On April 6th Diesel was 5 cents/liter cheaper in Austria. The price of gasoline was previously 3.9 cents lower, but now premium gasoline is 15.5 cents cheaper.

Gas stations were divided into groups

In order to analyze the price reduction domestically alone, E-Control analyzed data from fuel distributors (refinery, tank farm operators) as well as reported gas station prices in the fuel price transparency database. Gas stations were divided into 3 groups. Group 1 (1,090 gas stations) includes locations that large gas station chains operate themselves. Group 2 (884 gas stations) has tenants who use well-known gas station brands at at least 30 locations. Group 3 (1,291 gas stations) includes small operators who own either just one or several (less than 30) gas stations.

The “big ones” are now as cheap as the “small ones”

Die Margin Limitation Ordinance applies to the Groups 1 and 2. Group 3 was assumed to adjust its prices to the first two groups for competitive reasons. In group 1, the median price reduction was 18 cents/liter for diesel and 21 cents for gasoline. In group 2 there was a reduction of 5 cents for diesel and 16 cents for petrol. Group 3 lagged behind with minus 3 cents for diesel and minus 10 cents for gasoline. The prices of small gas stations – often operating in the discount segment – and larger operators have equalized as a result of the fuel price cap.

This is a remarkable development, says Mayer. “So far it has Group 3 ensured that prices remain low. Now it may be that this group no more leeway has downwards. We have to see how this develops further.” The regulation provides for an evaluation that takes into account the competitiveness of small operators.

Cooperation between the gas station operators was exemplary

It is very positive that gas station operators are very cooperative when it comes to the implementation of the fuel price cap and generally low prices from distributors pass on to gas station customers. The reduction in mineral oil tax (MöSt) has now had a full impact after gas stations have filled their own tanks with now tax-reduced fuel.

Leaking of the brake could restore the previous situation

E-Control cannot assess whether the measure that gas stations are now only allowed to increase their prices three times a week has had a price-dampening effect. In any case, controlling margins makes it more complicated, says Mayer. If the fuel price brake expires as planned at the end of April, the expert expects that “the old structure” in the competition between gas stations. Branded gas stations could become more expensive again. But what exactly will happen cannot be said, says Mayer: “That would be coffee brewing.”