GERMANY’S NEW FUEL POLICY MAY ACCELERATE EV ADOPTION -- ACADEMICIAN

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, April 1 (Bernama) -- Germany’s latest petrol price regulation could reshape automotive demand by accelerating electric vehicle (EV) adoption, while raising broader concerns over inflation and cost pressures in Europe, said an academician.

Germany’s new price regulation for petrol stations is set to take effect on April 1 and will allow petrol stations to raise prices only once a day, at midday.

The aim is to limit fuel price fluctuations and ensure greater transparency. Fuel price reductions, however, can still be made at any time.

Adjunct Professor of International Economics, Faculty of Business and Accounting, University Poly-Tech Malaysia (UPTM) – University of Applied Sciences, Germany, Dr Peter Mayer said the regulation, introduced to respond to soaring oil prices as a result of the war in West Asia, will influence consumer behaviour in one of the world’s key automotive markets.

“We see that people are now reconsidering having a traditional car and instead want to buy EVs,” he said during Bernama TV’s “Bernama World” programme today.

 Mayer expects the new development to expand to other countries, including Malaysia, in the coming year, amidst higher fuel prices, which will also increase the attractiveness of EVs.

“The EV boom or the increase of EVs will be permanent,” he emphasised.

Although it could be positive for climate change due to reduced air pollution, Mayer said the policy will have a strong impact on the economy and consumer behaviour, driven by higher fuel prices.

“There will be a general increase in inflation and higher transport costs for our industry.

“This price adjustment, which is not just a short-term issue, will continue to be the reality in Europe. It will have serious effects on society as a whole,” he said.

Mayer said that the new price regulation for petrol stations may address volatility, but he doubts it will lower fuel prices.

-- BERNAMA