German hauliers warn soaring energy prices may soon impact consumers

The German Road Freight Association has warned that the sharp rise in diesel prices is putting strain on the road transport sector and called on the government for help.

Since the start of the war in Iran, the price has increased by around 40 cents ($0.46) per liter, said Dirk Engelhardt, president of the Federal Association of Road Transport, Logistics and Waste Management (BGL).

With a monthly mileage of 10,000 kilometers and a fuel consumption of 30 liters per 100 kilometers, this results in an additional cost of around 1,200 euros per month for a truck, he explains.

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

For a fleet of 50 vehicles, this represents more than €700,000 per year. “It stands to reason that this could have an impact on consumer prices sooner or later,” Engelhardt said.

As diesel prices rise, the transport sector is appealing for government support. It is necessary to take rapid measures that do not involve a lot of bureaucracy to ensure companies’ liquidity and maintain supply chains, Engelhardt said.

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

What matters is that the measures are targeted and directly affect transport companies, he said.

Many companies rely on so-called diesel floats to protect against price fluctuations. These are price increase clauses agreed in individual contracts and working both ways.

But they often take time to take effect and can only alleviate current burdens to a limited extent. “And many small transportation companies don’t have such coverage mechanisms at all – the costs hit them immediately,” Engelhardt said.