Germany’s road freight industry warns of severe strain from soaring diesel prices, urging government intervention to prevent insolvencies and protect supply chains.
FRANKFURT: Germany’s road haulage industry is sounding the alarm over a sharp and sustained rise in diesel prices, calling for immediate government support to prevent widespread company failures and supply chain disruptions.
The Federal Association of Road Haulage, Logistics and Waste Management (BGL) reported that diesel prices have surged by approximately 40 cents per litre since the start of the conflict in Iran, translating into crippling additional costs for operators.
BGL head Dirk Engelhardt explained that a single lorry travelling 10,000 kilometres per month with a fuel consumption of 30 litres per 100 kilometres now faces about €1,200 in extra monthly expenses.
For larger lorries, which typically consume between 35 and 40 litres per 100 kilometres, the financial impact is even more severe, with a fleet of 50 vehicles facing annual additional costs exceeding €700,000.
Engelhardt warned that these escalating costs would inevitably filter through to consumers, stating, “This could reasonably affect consumer prices sooner or later.”
The transport sector is urgently calling for swift, low-bureaucracy measures from the government to secure company liquidity and maintain vital supply chains.
Proposed relief measures include implementing a diesel price cap, refunding the Carbon Dioxide (CO2) levy on diesel, or suspending the CO2 component of the lorry toll.
Engelhardt emphasised that any support must be precisely targeted to reach transport companies directly in order to be effective.
While some larger firms use contractual “diesel floaters” to hedge against price fluctuations, these mechanisms often react too slowly to fully cushion the current price shock.
Many smaller transport companies lack such financial hedging tools entirely, leaving them immediately exposed to the full brunt of rising costs.