Petrol industry to charge more for E10 debacle

German motorists could end up paying more at the pump for the botched introduction of E10 biofuel, as petroleum firms are reportedly are preparing to pass on the costs to customers.

Petrol industry to charge more for E10 debacle
Photo: DPA

Uwe Franke, the head of BP Europa, told the Friday edition of the Essen-based Wesdeutsche Allgemeine Zeitung daily that gasoline producers faced large penalties if they did not stick to government quotas for E10. The petrol with 10 percent ethanol has been widely shunned by drivers in Germany since its introduction in January.

“The costs for missing the quota will likely cost the industry between €300 and €400 million,” said Franke, adding petrol companies would have little alternative but to charge customers more.

E10 was supposed to be introduced across Germany this year, but petrol station chains like BP’s Aral stopped after many motorists refused to buy the new biofuel. Some were afraid the new gasoline, meant to reduce CO2 emissions, might damage their engines, while others took issue with its minor reduction in fuel efficiency.

In June, only one out of seven German drivers was reaching for E10 at the pump.

DAPD/The Local/mry

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German households to receive relief for gas costs ‘starting in January’

To help German residents with skyrocketing energy costs, the government is planning to provide relief starting in January, according to draft legislation.

German households to receive relief for gas costs 'starting in January'

Through the gas price cap, the so-called Gaspreisbremse, both German residents and companies will receive retrospective relief for their gas costs starting in January 2023, according to the draft. 

Previously the relief payments were set to stretch between March 2023 and spring 2024, with 25,000 larger businesses, as well as almost 2,000 hospitals and schools to receive the help starting in January. 

READ ALSO: How much could households save under Germany’s new price cap?

The German government is reacting to the sharp rise in energy prices with energy price brakes worth billions and wants to soften the blow on both private households and companies. 

Germany will also be divvying out a one-off energy relief payment in December.

READ ALSO: When will people in Germany get their December gas bill payment?

How much will households and businesses receive?

Under the gas price cap, households and small and medium-sized enterprises are to receive a guaranteed gas gross price of 12 cents per kilowatt hour for 80 percent of their current consumption. For the remaining 20 percent of consumption, the contract price is set to apply.

For district heating, the guaranteed gross price is to be capped at 9.5 cents. 

Starting in January, a gas price brake is also planned for industry. These large consumers are to receive a guaranteed price of 7 cents per kilowatt hour net for 70 percent of their previous consumption volume.

The largest part of the energy price brake is to be financed by a “defence umbrella”, or special reserve, totalling up to €200 billion. The government is still taking on new debt in order to finance the energy caps. 

Russia’s war against Ukraine has increasingly aggravated the situation on the energy markets in Germany and Europe in the course of 2022, the draft states. 

In particular, the recent large price increases for natural gas and heat represent a “considerable, in some cases existence-threatening burden for residents and companies in Germany,” it continued. “They are an enormous socio-political and economic challenge.”


relief – (die) Entlastung

Natural gas – (das) Erdgas

Consumption – (der) Verbrauch

cushion/soften a blow – abfedern

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