As fuel prices rise motorists quickly work out where to find cheaper fuel, reports SRF.
At petrol stations in Vacallo, a Swiss town near the Italian border, few cars stop to fill up. Italy’s government has temporarily cut fuel duty, making petrol cheaper across the border.
One woman says she shops and fills up in Italy every week, combining the trips. Is it worth it? At 20 cents less per litre a full tank can save around CHF 10. Supermarkets are typically cheaper too.
Before the tax cut Italians used to come to Switzerland for cheaper fuel.
A two-way trade
On Switzerland’s northern border, the incentives run the other way. In Kreuzlingen, in the canton of Thurgau, petrol costs up to 30 Swiss centimes less per litre than in neighbouring Germany. Swiss petrol prices respond more slowly to market changes than German ones. When prices rise there is a window when Swiss prices are materially lower.
Who wins?
Beyond motorists, the government collects extra fuel tax and fuel distributors sell more product.
More on this:
SRF article (in German)
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