Sunday, July 21, 2019

How the German C02 Tax Will Reshape Driving Habits

If this C02 tax goes into place (still yet to be certain), the 2020 tax added would be 10 Euro cents per liter.  Figure 12-cents (US currency). 

A typical car holds 45 liters of fuel, so this would add up to 4.50 Euro for each filled tank (roughly 5 US dollars) of added tax.  So lets use a Audi A5, and figure mileage.

The typical A5 will get you around 5.7 to 8 liters per hundred kilometers.  The slower and lesser aggressive driving....gets you closer to the 5.7 number.  What kind of speed are we talking about?  Mostly 80 to 100 kph or 50 to 62 mph.  The high speed (say over 130 kph or 80 mph) would get you closer to 8 liters for a hundred kilometers.

So if you did a transition or worried to the max about the cost factor, then you'd drive the 80 to 100 kph....to reach 5.7 liters.  In relationship?  You'd have around a minimum of six extra liters in your tank and thus save 60 cents plus the cost of normal gas. 

A big deal at 10 cents per liter?  No.

But here's the thing....half-way through this decade (2025), it's going to 30 cents.  And by 2030, it'll be 50 cents per liter on the C02 tax. 

My guess is that a fair number of Germans will try to figure some way to save, adapting to the cost factor, and lessening their speed whenever possible.  The idea that you might see some medium-sized cars sold with a tiny 1.2 engine?  There might be a series or two introduced before we get to the only e-car era (after 2030). 

Just something to think about. 


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