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COST OF LIVING

Reader question: Can I leave Switzerland to fill up my car in Germany?

From Wednesday, June 1st, Germany will reduce taxes on petrol by around 30 cents per litre. Can Swiss residents cross the border and fill up?

Petrol prices in Switzerland are climbing. Photo by Erik Mclean on Pexels
Petrol prices in Switzerland are climbing. Photo by Erik Mclean on Pexels

Among many of the common items to be hit with inflation over the past few months, perhaps the most painful has been the cost of petrol. 

While drivers are all to aware of the price hike when they visit the pump, even people without cars have been hit due to the flow on effect of increases in the cost of petrol. 

To soften the blow, the German government has put in place a temporary reduction in tax on petrol and diesel across the country. 

Petrol costs will fall by around 30 cents per litre – or as much as 35 cents including VAT – while diesel costs have been slashed by 17 cents per litre. 

Can Swiss drivers cross into Germany and fill up?

Yes. Germany will not charge foreign drivers different amounts, meaning everyone can benefit from the tax cut. 

Some countries, like Hungary, have restricted fuel discounts only to locals, however Germany has declined to do so. 

German automobile club ADAC expects a significant increase in Swiss customers for German petrol stations. 

READ MORE: Where in Switzerland can you find the cheapest fuel?

Is a similar plan being considered in Switzerland? 

Some Swiss petrol stations have complained about the German government’s decision, saying they fear significant losses if customers decide to cross the border and fill up. 

A similar decision by the Italian government saw drivers flock over the border, with fuel companies in the southern canton of Ticino saying they saw a 35 percent drop in customers. 

The Swiss government is currently considering a tax cut. The issue will be debated in mid-June, with the populist Swiss People’s Party advocating for a cut in costs. 

National Councillor Franz Grüter said the government should do more to release the pressure. 

“The pressure is enormous, I know people who turn off the gas pump because they don’t know how to pay for the gas. The federal government collects hundreds of millions of francs in additional taxes because fuel prices are so high.”

20min.ch/story/deutschland-senkt-spritsteuern-jetzt-droht-chaos-bei-tanktouristen-ansturm-413269357129

If implemented however, the impact of such a change would be less significant than in Germany, as Switzerland already has comparatively low tax on fuel. 

Only Austria has lower fuel taxes than Switzerland (among Switzerland’s neighbours).

Fuel in Switzerland: Why are Germans crossing the border to fill up?

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COST OF LIVING

From meat to travel: What’s becoming cheaper in Switzerland this autumn?

Usually, you expect the cost of living in Switzerland to go up — and often it does. But sometimes the consumers get a pleasant surprise — prices actually drop!

From meat to travel: What's becoming cheaper in Switzerland this autumn?

Even in Switzerland, prices go down at times, for reasons that are often hard to explain, because they driven by complex market forces. 

Right now, you can take advantage of these lower-than-normal prices:

Meat

Aldi recently announced price reductions of up to 36 percent for fresh beef, poultry, pork and lamb.

This means, for example, that 500 grams of minced beef now costs just 5.99 francs, almost 2 francs less than before.

A kilo of chicken thighs is 35 percent cheaper currently — at 5.49 francs.

And for 100 grams of pork fillet, you now have to pay 2.99 francs, instead of 3.99 francs previously.

Denner followed shortly after with its own reductions of around 25 percent on minced beef.

In the meantime, the more expensive retailer, Coop, is also about to cut prices: it said it would reduce the price per kilo of imported minced meat by a quarter. Swiss chicken thighs will cost 6.3 percent less, and pork fillet will be 25 cheaper.percent.

As The Local reported recently, this ‘price war’ among retailers benefits Swiss consumers:

READ ALSO: Is Switzerland’s latest supermarket price war good for shoppers? 

Fruits and vegetables

Tomatoes, zucchini, eggplants, and peppers have also seen a sharp decline.

According to figures from the Federal Statistical Office (FSO), their prices fell by 3.3 percent in August, as compared to the previous month.

For melons and grapes, prices dropped even more: by 7.8 and 15.5 percent, respectively.

Gasoline

Refuelling your car has also become cheaper.

Compared to the previous month, the price of petrol fell in August 1.9 percent. 

A litre of unleaded currently costs 1.77 francs and a litre of diesel 1.82 francs.

“In the last two weeks, fuel prices have fallen,” confirmed Vanessa Flack, a spokesperson for the TCS motoring organisation.

For heating oil, the decrease is between 6.4 and  12.6 percent.

Air travel

According to the latest figures from the FSO, the price level of international flights in August was 6.7 percent lower than in July.

“Overall, as far as tickets are concerned, we see that they are lower this year than in 2023,” according to Muriel Wolf Landau, spokesperson for Hotelplan travel agency.

All of the above cuts will bring some relief to Swiss consumers and may even (though slightly) offset the  increasing costs, like those of health insurance premiums.

READ ALSO: The best travel deals in Switzerland this autumn

Keep in mind though that these (and other) prices could very well increase in the medium term, if various negative economic factors converge.

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