Relief Package & Fuel Price Cap: The Traffic Light is Stuck on Yellow!

What kind of strange concept of freedom is the FDP relentlessly asserting within the coalition? The freedom to continue driving cheaply seems to take precedence over everything else. While Ukrainians are fighting for their freedom to live in a democratic country (or at all!), the only thing that occurs to the politicians here is to keep fuel cheap with their latest relief package - indirectly subsidizing Putin's war to the tune of 65 million US dollars daily. In other words, they're pouring more oil on the fire, to put it in metaphorical terms.

Thus, the latest relief package sends a disastrous signal regarding fuel prices: war and climate crisis notwithstanding - the main thing is that gasoline remains cheap!

They are reducing the price of gasoline by 30 cents per liter and diesel by 14 cents, to begin with, for three months, even though the fuel price, historically speaking, hasn't been that high anyway. This benefits frequent drivers and gas guzzlers the most. It is unjust and antisocial, even though a one-time energy cost subsidy rounds off the package.

Moreover, the fuel price reduction is happening even though citizens haven't changed their behavior at all, even when fuel was priced at 2.50 euros per liter, as seen both on the roads and by the traffic data analysis from TomTom and Inrix.

Economists have long said that fuel has no high "price elasticity of demand"; in other words, people don't really care how much a liter costs, they drive anyway - preferring to save on other things, like groceries. And especially: WHAT the Germans drive: A quarter of all vehicles are SUVs, additionally crowned by another eleven percent off-road vehicles, together dominating the registration statistics before compact cars at just under 32 percent - there's no sign of climate awareness. People prefer to sit comfortably, armored - and high up.

People are indeed dependent on cars, is the constant apologetic argument, now even from GREEN politicians, not just from FDP and SPD. But: Not on SUCH cars! And not on driving them without limit! What a decadent concept of freedom, driving 180 km/h in an SUV! And: It should precisely be the task of this coalition to reduce dependency on cars - and thus also a bit of dependency on dictators like Putin.

Aggravating the issue is that, besides boosting Putin's finances, it apparently also boosts the finances of oil companies. Their margin on fuel prices has reportedly risen massively in recent weeks, according to an analysis by Benzinpreis.de from February 6 to March 25, from 30 to 44 cents per liter, and diesel even doubled from 29 to 58 cents! This is highly immoral and a form of "war profiteering" of the worst kind at the expense of taxpayers. Hopefully, the government will curb this under antitrust law.

It is particularly bizarre, of course, that this state-directed price manipulation verging almost on planned economy levels is coming precisely from a party that preaches free market economy and the dictate of price. Anyone who doesn't think this is clientele politics has significant blinders on. On the other hand, government interventions, such as speed limits, are completely taboo. Schizophrenic, but they get away with it in the coalition.

Why not just a reduced commercial diesel?

No one would have complained if, following the example of other countries like the Netherlands, Poland, Belgium, France, Italy, Croatia, Slovenia, and Spain, a tax-reduced commercial diesel had been launched for the truly needy transport sector. Here, the high fuel price really is existentially threatening, unlike for the many SUV drivers in the country. Moreover, this sector forms the backbone and lubricants of the economy, with trucks driving for everyone's well-being and prosperity, not just for fun. Trucks, in relation to tonnage, are already true savers - and operators have an economic interest in keeping consumption as low as possible.

For all others - short-term concerning war and short- to long-term concerning the climate crisis - a strong traffic-light coalition signal to save would have been needed: temporary speed limits of 100 km/h on highways, 80 on rural roads, and 30 in towns, which would have been effective immediately. And yes, why not, in light of the terrible situation in Ukraine, a remake of the "car-free Sundays."

Additionally, there could have been a large-scale relaunch of campaigns reminiscent of the 80s "I am an energy saver." Where is the savings appeal from the Green Ministry of Economics and Climate Protection? The order of the day should have been saving - not the frantic search for new "oil sources" and gas deposits from other autocracies (Qatar) or dubious technologies (fracking).

The nine-euro ticket undermined by the fuel price reduction

Then perhaps the second measure, actually a sympathetic one, might have been supported instead of sabotaged: The 90-day nine-euro ticket. This could provide an interesting impulse for change if public transport lives up to the trust placed in it - and if public transport operators find a way to implement this quick-shot idea administratively. By the way, low fuel prices also sabotage the transition to electrification, doing a disservice to this shift. The Transportation Minister Volker Wissing's strategy continues along the same lines as his predecessor's: a bit of everything - even if it contradicts itself.

In the end, it remains: In the colorful traffic light coalition, everyone gets something - and the FDP gets the most. Although they are the smallest party, they are also the most radical. The FDP is increasingly becoming the "problem bear" of the coalition. And it grumbles the loudest.