Fuel tourism

Tank tourism describes the special form of border tourism in which fuel is refueled in neighboring countries in border areas .

backgrounds

Tank tourism mostly exists because of price differences, rarely because of differences in quality. The main reason for the price differences are differences in the taxation or subsidy of fuels.

Due to the distance-dependent expenses of the car trip, the profit decreases with increasing distance to the gas station near the border. The relative (and not the absolute) price difference is also decisive for the amount of fuel savings saved. It is also an advantage to fill up as much as possible per trip in order to maximize this difference. If you only take into account the fuel costs for the trip for the sake of simplicity, the maximum total profit of a tank tourism trip results as:

{\ displaystyle G = V _ {\ text {Tank}} \ cdot (P _ {\ text {Domestic}} - P _ {\ text {Foreign}}) - 2 \ cdot (d _ {\ text {Foreign}} - d_ { \ text {Domestic}}) \ cdot \ operatorname {Ve} _ {\ text {Auto}} \ cdot P _ {\ text {last}}}

.

Example: A car with a 60 liter tank and 7.5 l / 100 km consumption drives instead of 5 km to the nearest petrol station (petrol price 1.60 € / l) to the foreign petrol station 25 km away (petrol price 1.50 € / l ). Most recently, the driver refueled for € 1.45 / l:

{\ displaystyle G = 60 \, \ mathrm {l} \ cdot \ left (1 {,} 60 \, {\ tfrac {\ mathrm {\ euro}} {\ mathrm {l}}} - 1.50 \, {\ tfrac {\ mathrm {\ euro}} {\ mathrm {l}}} \ right) -2 \ cdot (25 \, \ mathrm {km} -5 \, \ mathrm {km}) \ cdot {\ frac {7 {,} 5 \, \ mathrm {\ euro}} {100 \, \ mathrm {km}}} \ cdot 1 {,} 45 \, {\ tfrac {\ mathrm {\ euro}} {\ mathrm {l }}} = 1 {,} 65 \, \ mathrm {\ euro}}

.

This calculation does not include the additional time spent on the tanker trip and the additional wear and tear on the car caused by this, nor is a tank volume that is not fully used due to residual amounts of fuel. These factors reduce the profit achieved even further.

Limitations

The import of fuel is subject to legal regulations, whereby mostly only the import of personal use is legal. The definition of personal use differs and in most countries it is limited to the tank content, in some countries an additional free amount of up to 25 liters is permitted in a reserve canister.

Transporting larger amounts of fuel outside the tank may cause problems. a. represent a violation of tax regulations ( tax evasion ) or security regulations.

Effects

The filling station operators align their planning accordingly. On the cheaper side, operators close to the border build capacities that would not be economically viable in the local area without foreign customers. At the same time there are gas station closings on the more expensive side.

The effects of fuel tourism go beyond the gas station industry. In many cases, tank tourism is also associated with general shopping tourism. As a result, there is a shift in sales and taxes not only in the petrol station sector, but also in retail. The additional road traffic can also lead to traffic shifts in places close to the border.

Tank tourism and CO ₂ reduction

In the Kyoto Protocol of 1997, the European Union committed itself to reducing average greenhouse gas emissions by 8% compared to 1990 levels by the period 2008–2012 in order to counteract global warming . The implementation is set out in the European program for climate protection . According to the principle of burden sharing , the EU member states have shared this average reduction target among themselves.

With regard to transport, the national sales of fuels is the measure for meeting these savings targets. Fuel tourism is causing a distortion. For Austria it is estimated that in 2004 32.2% of the CO ₂ emissions caused by traffic were caused by tank tourism.

Avoidance

The extent of tank tourism can be reduced through legal regulations or staggering the price differences.

Travel restrictions such as customs and visa regulations as well as complex and time-consuming border controls can inhibit private travel. If corresponding import restrictions or bans for fuels are monitored by border controls and violations are sanctioned, this can lead to a reduction in fuel tourism. However, appropriate measures are not always available due to supranational treaties such as the common internal market in the European Union.

Several models are discussed as solutions, such as a general reduction in taxes on fuel in the border regions or a map model in which the benefit is only intended to benefit residents of the border regions concerned. The introduction of a motorway toll or vignette is also being discussed, which could compensate for the reduced tax revenue by lowering the mineral oil tax. On the other hand, tank tourism could also be avoided by taxing more heavily in the country in which fuels are cheaper or by coordinating corresponding taxes and charges to a greater extent internationally (e.g. at EU level).

Examples from Europe

Belgium

In Belgium, diesel is currently (August 2018) taxed significantly higher than in Germany. In the case of gasoline, there is no significant difference in price or tax compared to Germany and France. Belgium benefits significantly from the significantly higher tax on gasoline in the Netherlands, but the Netherlands now has a slightly lower tax burden on diesel. In contrast, the lower taxes in Luxembourg have been leading to tax shortfalls due to fuel tourism for decades. Luxembourg's price advantage for diesel is 30 to 40 cents per liter.

The Belgian government announced in 2015 that it would increase the tax on diesel by 10.8 cents by 2018. Mineral oil associations criticized the fact that on the one hand the buoyant tank tourism from the Netherlands would decrease, while the tank tourism to Luxembourg would increase, so that the bottom line was that no additional income for the treasury could be expected. In addition, a decline in refueling by truck drivers is to be expected. A uniform tax rate of around 60 cents per liter has been in effect for petrol and diesel since mid-2018.

In Belgium - similar to France - there is a partial diesel reimbursement right for heavy commercial vehicles. In August 2018, the claim was 24.75 cents per liter. This means that truck drivers in Belgium fill up with diesel at prices similar to those in Germany.

Denmark → Germany

Petrol and diesel are on average only a few cents more expensive in Denmark than in Germany. This low price advantage is used by Danish customers, but it only plays a minor role in the otherwise high-turnover shopping tourism from Danes to Germany.

Germany → Luxembourg

Petrol stations between Mertert and Wasserbillig (Luxembourg)

Tank tourism has flourished between Germany and Luxembourg since the mid-1970s . In addition to fuel, Germans also like to buy coffee, champagne and cigarettes there because of the tax advantages. The Luxembourg border community of Mertert , located near the German city of Trier , benefits particularly from this , where more than a dozen petrol stations are located on one street between the districts of Mertert and Wasserbillig . The former customs buildings at the border crossing of the Trier- Luxembourg motorway were also converted into a large petrol station after the identity checks were abolished by the Schengen Agreement . The expansion of the European route E 29 (further construction of the A 8 / Luxembourg A 13 motorway to Luxembourg City) increased fuel tourism, especially in the places bordering the Saarland , Schengen and Remich . A total of 58 gas stations can be found along the 135 km long border with Germany (as of 2009).

Thanks to fuel tourism from neighboring countries, Luxembourg earns around 700 million euros a year.

Fuel tourism (including fuel purchases from transit traffic) accounts for 75% of Luxembourg's greenhouse gas emissions from fuel sales under the Kyoto Protocol. This is 40% of the country's total emissions balance. It must be taken into account that the pure fuel sales flow into this balance sheet, regardless of where it is then consumed.

The Europe-wide decline in petrol and diesel prices has led to a significant decline in fuel tourism. This is also due to the fact that the price advantage has become smaller. Luxembourg feels this particularly strongly.

Netherlands → Germany

Until mid-2008, diesel fuel and LPG were significantly cheaper in the Netherlands than in the Federal Republic of Germany. Several minor increases in mineral oil tax and a VAT increase on October 1, 2012 significantly reduced the price advantage in the Netherlands; Since the beginning of 2013 it has been cheaper to fill up with diesel in Germany. With a further increase in the mineral oil tax on January 1, 2014 by around 1 cent for carburetor fuels, 3 cents for diesel and 7 cents for LPG, all fuels in the Netherlands are now more expensive than in neighboring Germany and Belgium. Tank tourism has now changed direction, especially with diesel and LPG. Due to the high demand from the Dutch, fuel prices near the border are sometimes noticeably higher than in the interior of the country. Since the significant increase in Belgian diesel prices, the Netherlands has now (mid-2018) a small price advantage, which has resulted in private tank tourism changing direction.

Germany → Poland

Also since the border was opened in 1990, Germans have often been refueling in the region near the border in Poland . In the area close to the border on the Polish side, there are a lot of petrol stations. B. Hohenwutzen / Osinów Dolny ( Niederwutzen ) up to six petrol stations. The sharp decline in the Polish zloty currency as a result of the financial crisis led to an increase in Poland's price advantage: In the summer of 2011, the price savings for Super were 25–30 cents, for diesel around 15–20 cents. Due to a significant tax increase at the beginning of 2012 and a recovery in the zloty exchange rate, the price advantage fell to a few cents by February 2012. The Europe-wide decline in petrol and diesel prices has led to a significant decline in fuel tourism. This is also due to the fact that the price advantage has become smaller.

Germany → Czech Republic

Since the border was opened in the early 1990s, tank tourism has also flourished between Germany and the Czech Republic . In addition to petrol stations, there was also a lot of small business in border areas. Many of the roads near the border were expanded and petrol stations, casinos and other commercial buildings were built.

Due to the economic boom in the Czech Republic and the strengthening of the Czech crown , the initially significant price difference at petrol stations narrowed more and more. The financial crisis only stopped this trend for a short time between August 2008 and February 2009. The price difference for gasoline is around 15–20 cents (July 2011). In the case of diesel, the price difference is only a few cents. Due to the weakness of the Czech crown since autumn 2013, the price advantages of the Czech Republic have increased again. At the beginning of 2015, gasoline and diesel prices fell below 1 euro for a short time, and in autumn 2015 they were just a few cents higher. Prices are higher near the German border than inland.

After the sharp drop in diesel prices in Germany at the end of 2015, fuel tourism has weakened and in some cases has changed direction against the background of different fuel qualities. Czechs are now increasingly filling up with diesel in Germany.

Austria

In the 1980s and 1990s, fuels were still cheaper in several neighboring countries than in Austria. So there was For example, long waiting times for years at the first petrol stations just beyond the borders with Slovenia and Germany. The Austrian fuel prices are now considered to be extremely cheap. However, the price advantage for diesel compared to Germany has fallen markedly in recent years.

In 2012, fuel sales rose again, which is attributed to the growing fuel tourism. In particular, the dramatic tax increases in the southern neighboring country of Italy have increased Austria's price advantage to over 30 cents.

When it comes to gasoline, tank tourism from neighboring countries in Austria accounts for around 20% of the country's total sales volume. Another side effect is that the assigned CO ₂ emissions are mathematically added to the state of Austria, although they are caused in and by Germany. With reference to the economic and financial benefits of fuel tourism, the government expressly ruled out an increase in the tax on diesel in March 2015.

As evidence of tank tourism between Germany and Austria , Austrian fuel was dyed as early as the 1970s and samples were taken from the petrol tanks at the border. The former main customs office in Passau also pointed out that “private individuals are only allowed to bring a reserve container with a maximum of 20 liters of fuel for their own use tax-free from Austria to Germany”. If the fuel carried exceeds the maximum amount, the mineral oil tax would be due when crossing the border . If the import is not declared, the importer is liable to prosecution.

Petrol station directly behind the German border ( B 21 )

In certain regions, tank tourism led to the opening of gas stations right behind the border, such as in Achleiten near Passau, where a gas station moved into the former customs office building. In Salzburg-Liefering and Bad Reichenhall-Schwarzbach, too, new filling stations were built directly behind the former border buildings on the Austrian side.

After the increase in the mineral oil tax in Austria on July 1, 2007, the price difference between the two countries decreased. Diesel was 6 cents more expensive and gasoline 3.6 cents more expensive. Petrol is on average around 20 cents cheaper in Austria than in Germany, with diesel the price advantage is only around 10 cents. There are high price differences within Austria: Autobahn filling stations often sell fuels at the so-called maximum prices, i.e. up to 20 cents per liter more expensive than free filling stations in metropolitan areas - in individual cases it can therefore happen that diesel is more expensive than in Germany.

With the renewed increase in the mineral oil tax by Austria on January 1, 2011 by 4.8 cents (incl. VAT) for petrol and 6 cents (incl. VAT) for diesel fuel tourism could be reduced noticeably. According to the Austrian Ministry of Economics, this amounted to 25% of petrol station sales in 2010. According to the first press reports in January 2011, Austria's price advantage for diesel has actually been reduced so much or even vice versa that refueling trips to Austria are no longer available.

In mid-March 2012, according to the ADAC, the price difference for diesel was around 10 cents and for premium petrol around 18 cents. The level before the mineral oil tax hike was thus restored.

Switzerland

The history of tank tourism in Switzerland is characterized by irregular changes in direction, which were and are significantly influenced not only by changes in the specific tax burden, but also by significant exchange rate fluctuations.

Among the Western European countries, Switzerland and Liechtenstein had relatively low prices for petrol until 2010, for example in 2008 petrol in Switzerland was around 30 cents cheaper than in Germany. The diesel prices, however, were always above the European average. At the Swiss border towns, primarily those to Germany, Italy and France, the density of petrol stations is much higher due to petrol tourism and petrol prices on the price pole are also shown in euros there . Due to the massive rise in the rate of the Swiss franc , which even increased in 2011, there was a lasting change in the price differences between Switzerland and all neighboring countries. In August 2011, gasoline was temporarily even cheaper in Germany than in Switzerland. Compared to Austria, Switzerland and Liechtenstein's low petrol price advantage turned into a price disadvantage at times. The increase in the mineral oil tax in Austria on January 1, 2011 was only able to reverse this trend temporarily. In mid-2011, Swiss media reported on a significant slump in the tank tourism business due to the high franc exchange rate. With the introduction of the minimum exchange rate for the franc against the euro on September 7, 2011, the competitiveness of Swiss petrol stations improved again.

With the opening of the Swiss franc on January 15, 2015 and the associated appreciation of the franc, gasoline became cheaper in neighboring countries. Although gasoline prices in Switzerland fell slightly the following day, this was only able to offset the effect to a relatively small extent.

Since August 2015, there has been a noticeable weakening of the franc against the euro, which on the one hand brought the price of gasoline back to the German level and on the other hand the diesel price fell back to around the Italian level. The further decline of the franc at the end of 2017 meant that gasoline was again a little cheaper in Switzerland than in Germany.

There is also tank tourism in the Samnaun customs-free area , where petrol is around 45 cents as of January 20, 2015, and diesel around 55 cents cheaper than in the rest of Switzerland. After the course was released on January 15, 2015, the operators there reacted by lowering the prices for diesel and unleaded 95 by around 20 cents to 0.95 francs and 0.91 euros, respectively, in order to stay cheaper than in neighboring Austria, where the gasoline cost around 1.10 euros at this point.

In traffic between the EU and Switzerland, the contents of the main container and up to ten liters in the reserve canister are exempt from import duties, but the fuel may only be used duty-free in the vehicle in which it was imported. When driving by car within the EU, higher amounts of fuel may sometimes be carried in the reserve canister (for example up to 20 liters according to German law when crossing the border within the EU, when driving within Germany even up to 60 liters).

France

Until around the turn of the millennium, tank tourism from France to Germany was popular, as a liter of gasoline cost between six and seven French francs (approx. 0.92–1.07 euros), while in Germany before the eco-tax was introduced, one liter of gasoline was far less than 2 DM (less than 1.02 euros).

Since the beginning of 2018, the tax rates in France have been significantly higher than in Germany, with diesel being particularly expensive. As in Belgium, commercial trucks enjoy a partial reimbursement claim that reduces the diesel price to roughly the German level. France had also decided to gradually reduce the tax advantage for diesel. The tax rates differ in three regions, whereby the Paris area has about 2 cents per liter higher and on the island of Corsica a tax discount of about 1 cent is granted. The fuel is usually much cheaper in France in supermarkets, while it is more expensive on motorways and in rural areas. The small petrol stations at parking garages in downtown Paris are a specialty, as they often have exorbitantly high prices.

Many French people from Lorraine drive to Luxembourg border towns such as Schengen to refuel and shop there. In addition, all fuels are much cheaper in Germany, Spain and Andorra. Conversely, France benefits from the high gasoline prices in Italy. Since the Swiss franc was released on January 15, 2015, tank tourism to Switzerland has suddenly changed direction: while the French came to Switzerland to refuel before, it's now the other way around. With Belgium there is almost the same price for all fuels.

Italy

Both petrol and diesel are significantly more expensive in Italy than in any of the neighboring countries. To avoid fuel tourism, Italians who live near the Swiss or Austrian border get their petrol cheaper.

As part of the new Italian government's austerity program, taxes on fuel were raised significantly on December 7, 2011. Petrol was 10 cents more expensive, diesel 13 cents more. This made fuel prices considerably cheaper in all of Italy's neighboring countries. In Switzerland, for example, petrol was 25 cents per liter cheaper. Therefore, the abovementioned reductions were no longer sufficient to make it more palatable for Italians to refuel in their own country. As a result, the amount of the discount had to be increased. When the Swiss franc was released on January 15, 2015, diesel was again more expensive in Switzerland than in Italy, while the price advantage in Switzerland for gasoline was reduced to a few cents. The province of Lombardy then significantly reduced the amount of petrol discounts for residents of the border areas on January 23, 2015, and the corresponding reduction for diesel was even abolished.

Because the valley of Livigno is duty-free , tank tourism with Switzerland runs in the opposite direction: The numerous petrol stations in the valley sell premium gasoline or diesel at 40 or 70 cents cheaper than in Switzerland and up to 60 cents cheaper than in the rest of Italy ( As of January 2015).

Norway → Sweden

The difference in gasoline prices between Norway and Sweden is around 10–20%. Overall, the purchasing power outflow from Norwegians to Sweden through border tourism , refueling and other purchases is around 10 billion NOK per year.

Norway → Russia

The Russian mineral oil company LUKOIL announced in mid-2012 that it would exploit the highest price difference in Europe between two neighboring countries in all of Europe: After a new state treaty between Norway and Russia introduced visa-free border traffic for citizens of both countries near the border, LUKOIL would like to be on the Russian side of the border open a gas station. The fuel prices in Russia are only a little more than a third of the Norwegian level, so the savings per liter would be significantly more than one euro.

Finland → Russia

Also due to the depreciation of the ruble , the enormous price differential between Finland and Russia of more than 50% has been tapped since around 2015. Tank tourism is still expensive: Finns have to apply for a visa to visit Russia. At the same time, sales at the petrol stations on the Russian side of the border are increasing. New border crossings are also constantly being opened.

Poland / Slovakia / Hungary → Kaliningrad (Russia) / Ukraine / Belarus

The price is much lower in Belarus and Ukraine at 0.80 - 0.90 euros (as of July 2011) than in the EU. In Russia, fuels are even cheaper. However, there can be no talk of classic tank tourism, as time-consuming border controls have an inhibiting effect on private travel. EU citizens have been able to enter Ukraine without a visa since 2008.

Portugal → Spain

For many years, fuels have been more expensive in Portugal than in Spain. By raising the Portuguese sales tax rate to 23%, Spain's price advantage increased to 25 cents for petrol and 13 cents for diesel. Fuel tourism intensified as a result.

Slovakia

Due to a shift in exchange rates, fuel prices in the neighboring countries of Austria , Poland , Hungary and the Czech Republic fell well below the level in Slovakia. Tank tourism was the result. Ukraine as a neighboring country can be neglected as a non-EU member despite the comparatively very cheap fuel because of the strict entry requirements.

The Slovak Parliament therefore decided at the beginning of 2010 to lower the tax rate on diesel as of February 1, 2010 by 11.3 cents per liter. However, the average price of premium gasoline in Slovakia in January 2013 was € 1.54. At the same time, prices in neighboring countries were lower. Romania: € 1.34, Poland: € 1.36, Czech Republic: € 1.40, Austria: € 1.42 and Hungary: € 1.43. Austria offers the advantage of the common currency and therefore the exchange rate risk is eliminated in the long run.

With a few exceptions, fuel tourism is not worthwhile with diesel, although Bratislava, the largest city and capital, is right on the border with Austria, where diesel is still the cheapest before Romania and Poland, the price advantage in January 2013 averaged just 7 cents each Liter.

Examples outside Europe

Canada → USA

Both gasoline and diesel are cheaper in the US than in Canada.

USA → Mexico

The prices for gasoline and diesel are subsidized by the state in Mexico, the nationwide uniform prices demanded by the monopoly provider PEMEX are therefore much cheaper than in the USA. In mid-2008, when record prices were being charged in the US, the price advantage was more than half. In the US border city of San Diego , California , auto repair shops specialized in installing additional fuel tanks; this enjoyed high demand. The New York Times spoke in an online video report of "gas tourism" from El Paso to Ciudad Juarez . By mid-2009, the price gap between Mexico and the USA had narrowed again significantly.

Singapore → Malaysia

In Singapore , carburetor fuels are more than twice as expensive as in neighboring Malaysia . By law, the Singapore authorities are entitled to check the tank contents of vehicles with domestic registration upon departure. This happens on a random basis during the exit control by looking at the fuel gauge on the dashboard. According to the law, the tank must be at least three-quarters full, otherwise a fine of 100 to 500 Singapore dollars (approx. 60 to 300 euros) will be levied and the driver will be refused the missing fuel. The regulation affects the tanks for petrol and natural gas - if the departing vehicle has a bivalent drive with tanks for both fuels, both tanks must be at least three quarters full. If the fuel gauge is tampered with, it will be prosecuted.

Turkey → Iran

The world's largest arbitrage used to be on the import of fuel from Iran to Turkey . In November 2008, for example, the highly taxed diesel from Turkish filling stations (163 US cents) was 54 times as expensive as the heavily subsidized diesel in Iran (3 US cents). That has changed, with less subsidy from 2010, with prices of around € 0.50.

Colombia → Venezuela

Fuel smuggling has developed between Venezuela and Colombia due to the strong price differential . In Venezuela the state subsidizes the fuel very heavily, so that it only costs around 2 euro cents per liter. In neighboring Colombia, the price of gasoline is significantly higher at 80 euro cents per liter and thus attracts smugglers.

United Arab Emirates → Oman

After the United Arab Emirates gradually began to abolish fuel subsidies in 2010, several significant price increases began. Since September 2010, a liter of petrol has cost around 47 US cents (35 euro cents), which is significantly more than in any other country in the region. As a result, fuel tourism began to flourish along the shared border with Oman . Up to 500 liters of fuel can be refueled in one trip in Oman, brought across the border and sold at a profit in the Emirates. In Oman, gasoline costs just 31 US cents (23 euro cents) per liter and remains highly subsidized. On August 1, 2015, the Emirates completely lifted their subsidy policy. In Oman, measures are now being considered to curb flourishing fuel tourism to the Emirates; An adjustment to the policy of the Emirates is also expected.

Web links

Wiktionary: Tank tourism - explanations of meanings, word origins, synonyms, translations

Individual evidence

^ Society for Technical Cooperation : International Mineral Oil Taxation

↑ ^a ^b Current gasoline prices in Europe: TCS Suisse (PDF)

↑ Import restrictions ( Memento of the original from September 4, 2014 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. on arboe.at, overview of allowances. @1@ 2

^ Karl Freudenthaler: The CO2 emissions trading: Importance for the overall economy and for individual companies , 2009, ISBN 3-8366-5228-5 , p. 45.

↑ Maximumprijs voornaamste Petroleumproducten ( Memento of the original from April 19, 2012 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. . @1@ 2

↑ Store diesel prices in Nederland interesting voor Belgische klant . In: TankPro.nl . ( tankpro.nl [accessed August 29, 2018]).

↑ Government will earn less from increasing excise duties for diesel than expected on brf.be

↑ Diesel is (even) more expensive than announced on brf.be.

↑ Mineral oil tax refund made easy. Retrieved March 18, 2018 .

^ Daniel Ullrich: Tanktourismus: Grenzraum Deutschland / Luxemburg ( page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice. from 2009. Retrieved July 19, 2011.@1@ 2Template: Dead Link / geo.uni.lu

^ German Foreign Office: Information on Luxembourg: Economic Policy: State Budget

↑ Luxembourg Ministry of the Environment: National Allocation Plan 2008–2012 for Luxembourg, p. 17 f.

↑ ^a ^b Falling fuel prices slow down tank tourism on wiwo.de

↑ Accijnzen Diesel en LPG omhoog .

↑ Dutch people fill up in Germany at rp-online.de.

↑ Overheid maakt accijnstarieven voor 2014 bekend

↑ The Dutch make fuel expensive in Nettetal .