FDP's Fuel Subsidy: "Completely Outdated"

The discount at gas stations proposed by Federal Finance Minister Christian Lindner to artificially lower the fuel price to under two euros not only meets strong opposition from environmental organizations and gas station operators but also from leading economists. The president of the Munich Ifo Institute, Clemens Fuest, told the Rheinische Post, "Reliefs should not be given out indiscriminately, but selectively." He therefore does not consider the gas station discount the right instrument. In households with high incomes, the share of spending on gasoline is particularly high, which means that the discount tends to have a redistributive effect from the bottom up. The government has already decided on targeted aid with the increase in the commuting allowance and the heating cost subsidies.

"The discussion about gas station discounts is completely outdated. It counters climate protection and massively exacerbates the challenges of a potential stop of Russian gas supplies," criticized the "economic wise man" Veronika Grimm.

The aim should be to relieve lower and middle incomes. However, gas station discounts relieve high earners more because they own more cars and drive longer distances. A dampening effect of high prices on demand is necessary to avoid even greater challenges in the event of a shortage of fossil fuels, Grimm further warned. She once again reminded of the "energy money" mentioned in the coalition agreement, which she believes high-income earners should also declare as income. Furthermore, she called for "energy efficiency programs". Finance Minister Lindner, on the other hand, considers energy money unsuitable.

Cartel office examines price agreements

Meanwhile, Federal Minister for Economics and Climate Protection Robert Habeck (Greens) has commissioned the Federal Cartel Office to examine price developments. There is suspicion that oil companies are profiting from the current war situation. The oligopoly situation in the German fuel market has long been a structural problem, according to Habeck. It shouldn't be that companies make unreasonable profits out of the current situation. The Cartel Office confirmed that it is already examining and observing whether the falling crude oil prices are reflected at the pump. Gasoline currently costs an average of 2.20 euros, and diesel even 2.30 euros.

German refineries in Russian hands

The budget policy spokesperson of the Greens in the Bundestag, Sven-Christian Kindler, also pointed out the responsibility of refineries for the increased fuel prices. Here, too, there are close ties to Russian state-owned companies. For example, Rosneft is the owner of the refinery in Schwedt, Brandenburg. There is suspicion that large extra profits are being made. One could also call them "war profits", Kindler explained to Bayern 2. He also advocated speed limits, such as 30 km/h in the city. The need for a traffic and energy transition is more urgent than ever, and independence from fossil resources must be enforced because these also restrict the freedom of societies, Kindler said.