Gazprom cuts off Denmark from Russian energy … but this should not be a situation with “all hands on the pumps”, warn economists

, the Russian energy company, announced yesterday that it will not supply more gas to Ørsted – ’s largest energy company. A day earlier, the Danish company had reiterated its position that it would not meet ’s demand for payment in rubles.

The , the Danish Energy Agency, has secured the public that Gazprom’s decision does not pose a threat to Denmark’s energy supply, with reference to the country’s emergency reserves, aggressive green energy changes and the forthcoming opening of a new gas pipeline from Norway.

Bid hunting in Germany
But with continued high fuel prices, not all Danish motorists are willing to wait for prices to fall in Denmark. Instead, a new German policy can bring some Danes across the border to refuel.

The policy, which applies for the next three months, lowers taxes on petrol and diesel in the country. The Bundeskartellamtt, the German market regulation agency, monitors to ensure that tax relief translates into savings for consumers.

If it does, a liter of German petrol can quickly cost 4-6 kroner less than a liter in Denmark.

exposed to criticism
Peter Rasmussen, fuel director at Circle K Denmark, has criticized the policy. Talking to DRhe says that their stations in expect a decrease of 10 to 15 percent in fuel sales over the next three months, as well as a decrease in sales of other goods.

Within Germany, politics have also met with criticism. Economists warn that the policy could trigger a rush to refuel, increasing the risk of fuel shortages. And by increasing demand, some say the policy could have the paradoxical effect of raising prices at the pump.

The Danish Prime Minister said at a press conference in on Tuesday that the Danish government will not introduce a similar tax relief on petrol and diesel with reference to the possibility of price increases.

Source: The Nordic Page

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