Energy prices have skyrocketed since the beginning of the war in Ukraine – fuel now costs well over two euros per liter. The federal government wants to accommodate consumers. The measures do not go far enough for the Union.
In view of rising energy prices due to the Ukraine war, the federal government wants to relieve German consumers. According to information from the “Bild” newspaper, Federal Finance Minister Christian Lindner (FDP) wants to accommodate German drivers with a discount on the enormously increased fuel prices. Federal Economics Minister Robert Habeck (Greens) also announced a new package of measures on Sunday evening. The reaction of the federal government does not go far enough for the Union – it calls for a fuel price brake of 40 cents per kilometer.
Electricity, heat and mobility: Habeck announces three criteria for action
The price increases in the entire energy sector are overwhelming for many people, said the Economics and Climate Protection Minister of the German Press Agency in Berlin. “Extremely high heating costs, extremely high electricity prices, extremely high fuel prices put a strain on households, and the lower the income, the more. The federal government will therefore launch another relief package.”
The Russian attack is driving up fossil energy prices, explained Habeck. “And all because fear of energy shortages and speculation are heating up the price spiral.” He announced three criteria for the new measures.
First of all, there must be simplifications for electricity, heat and mobility, said the minister. “It is precisely the high heating costs that are overwhelming many families.” The Federal Ministry of Economics estimates that the gas bill for an average family in an unrenovated one-family house will increase by around 2,000 euros in the current year.
Secondly, energy efficiency and savings are also needed, such as reducing consumption when driving or replacing gas heaters, said Habeck. Thirdly, further market-based impulses are necessary, so that the following applies: “the more efficient, the lower the costs”.
Habeck emphasized: “These three criteria must be reflected in the relief package.” In this respect, the proposals of Finance Minister Christian Lindner (FDP) fell a little short. “The government will now quickly and constructively put together the overall package in a work process.”
Lindner wants to relieve drivers with a discount on fuel prices
According to a report in the “Bild” newspaper, Finance Minister Lindner wants to accommodate German motorists with a discount on fuel prices. Lindner wants to introduce a fixed price reduction “immediately” in order to push the costs of motorists towards two euros per liter of fuel, the newspaper (Monday edition) reported, citing government circles.
Specifically, drivers should receive the discount when paying at the gas station. The fuel station operators should then be reimbursed by the federal government for the amount of the discount. Lindner wanted to react to the record prices for petrol and diesel fuel, according to “Bild” from government circles. However, the specific amount of the discount has not yet been determined. He could possibly be 20 cents per liter, possibly even more.
A few days ago, Lindner was open to increasing the commuter allowance because of the high energy prices. Russia’s invasion of Ukraine has pushed up the price of crude oil, making gasoline, diesel and other fossil fuels significantly more expensive.
The finance ministers of the euro countries will discuss the consequences of the Ukraine war in Brussels on Monday. According to diplomats, “serious” effects on the 19 countries with the common currency are feared. The sharp rise in energy prices is likely to continue to drive inflation, with painful consequences for consumers and companies alike. The EU Commission is therefore considering, among other things, a price cap for oil and natural gas.
Union demands fuel price brake
The Union, on the other hand, has demanded relief of at least 40 cents per liter. Group Vice Jens Spahn (CDU) said on Monday in the ARD “Morgenmagazin” after announcements of relief plans from the coalition: “We are curious. It has to be at least 40 cents per liter and it has to be unbureaucratic.”
In view of the sharp rise in petrol and diesel prices in the wake of the Ukraine war, the CDU and CSU had spoken out in favor of reducing mineral oil and value-added tax on fuel prices. No matter how you design a fuel price brake, whether it is a tax cut or a discount model, these are ultimately technical questions, said the first parliamentary director of the Union parliamentary group, Thorsten Frei (CDU), on Monday on Deutschlandfunk. One is willing to talk “about all possible models”. It is crucial that citizens and businesses are relieved at the petrol pump.
Source: Stern
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