Europe is paying a €500M extra "energy tax" every day since the conflict began. President EU said it: not one extra molecule of energy. Just burning cash.
This tax hit BASF hard. The world’s chemical giant didn't just hike prices once. On March 18: Up to 30% on detergents and feed ingredients.
On April 27: Another 25% hike on plastic additives. Effective immediately.
The biggest mistake is thinking this is temporary. In my opinion, this is the permanent hollowing out of European industry. We already lost 9% of our chemical capacity. New investment is dead.
Think about the "B2B lag." Right now, manufacturers absorb this pain. But it will reach you in Spain, Italy, or Poland in Q3/Q4.
If you are a poultry farmer, your feed just jumped 30%. If you make plastic bottles, your costs are exploding.
My take for the industry:
• Retailers: Second inflation wave hits July. Plan pricing now.
• FMCG: Simplify products. BASF is just the first domino.
• SMEs: Lock supply contracts today. You have zero buffer left.
The "quiet" hike is about to get very loud for consumers.