Germany is set to pass legislation to put the brakes on rapidly rising gas prices. Berlin says a tax on petroleum profiteers is under consideration, but adds that it’s too early for any drastic action.
German Economy Minister Katherina Reiche on Thursday urged caution over new relief measures as fuel prices surge because of the US-Israeli war against Iran.
Prices at the pumps have surged with global supplies under pressure because of Iran’s stranglehold on the Strait of Hormuz, attacks on Iranian fuel infrastructure and Tehran’s counterattacks in the Gulf.
How much has the price of gasoline risen in Germany?
Fuel prices have been rising sharply since just before the war on Iran began at the end of February.
According to the General German Automobile Club’s data, diesel has increased by 42 eurocents (about 48 US cents) per liter (0.264 gallons), while E10 petrol has risen by nearly 27 cents.
The pace of increases has recently been slowing.
On Wednesday, the nationwide daily average price stood at €2.044 per liter ($8.83 per gallon) for unleaded E10 gas and €2.167 per liter ($9.37 per gallon) for diesel.
Oil prices leapt again on Thursday after Qatar reported major damage to a vast liquefied natural gas facility in the wake of Iranian strikes.
What is the German government’s position on gasoline hikes?
Reiche told the Bundestag that what Germany does not need “20 days after the war” is “activism,” stressing the government is acting in a measured way.
She said calls for a fuel price cap, discounts, or a windfall tax are being considered, but that they must be weighed against costs and benefits.
The coalition has introduced a fuel pricing package requiring gas stations to raise prices only once daily at noon, while allowing reductions at any time, alongside tighter antitrust rules.
The Bundestag is preparing to pass the package under an expedited procedure. A vote in the Bundestag is targeted for next week, allowing the Bundesrat to take it up the following Friday.
Whether the measure will ease prices remains disputed
What have different political parties said?
Center-left Social Democrat (SPD) deputy floor leader Armand Zorn said the government will “adjust” if the crisis continues, adding a windfall tax is being discussed and that profiting from war is “indecent.”
German Finance Minister Lars Klingbeil, of the SPD, is considering the introduction of a special tax “to skim off excessive crisis profits”, a source for his ministry said.
Conservative Christian Democrat deputy Sepp Müller also signaled further action if the situation persists, accusing oil companies of driving up prices.
Opposition parties criticized the government for doing too little, with Left Party leader Ines Schwerdtner saying people are being left behind.
The Greens are advocating for a windfall tax, with support from the SPD and the Left. The Left is also pushing for cheaper public transport.
Edited by: Sean Sinico
DW News
