Friday, September 20, 2019

Gas News

The word this afternoon in Germany, out of Berlin and the coalition government under Chancellor Merkel....is that diesel and gasoline prices will be going up in 2021 with a fee of 3 cents per liter.  Then in 2026....it'll go somewhere along the lines of 9 to 15 more cents per liter. 

Desired effect?  This is supposed to make you happy to accept the battery-powered car business, and go cross the line early.

Current pricing of E10 unleaded per liter?  The cheaper rate in a week that you might notice is 1.35 Euros per liter.  For the plain unleaded, around 1.40 a liter.

I should add....a second part of the government deal involves the end of new oil heaters in homes....as of the end of 2025.  How many German homes are still oil-heated?  Back in 2017, it was around one in five German houses/apartments that was heated by oil.  It's a declining thing, and even without the government ban....I think half of the pro-oil enthusiasts would have given up within the next decade. 

As for the gas thing angering the public?  If you were on the lower end of society, this will be another frustrating part of your economic spiral.  Monthly, it'll mean ten to fifteen Euros that you 'give' the government.  This increase in 2026?  That might be a harsh reality that makes it hard for CDU or SPD to convince low-income people to vote along their lines. 

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