Clemens Fuest, president of the Ifo institute, warned against a state‑run discount at the gasoline pump. Speaking to the German daily “Welt”, he argued that a fuel rebate would be detrimental in the current context. “A discount would mask the scarcity signal and harm the German economy as a whole” he said, noting that the rise in gasoline prices is a clear sign that oil supplies are tightening. “It’s essential that drivers feel this price signal and adjust their behavior as far as possible” Fuest added.
The German “traffic‑light” coalition introduced a similar fuel discount in 2022 after Russia’s invasion of Ukraine, aiming to blunt the sharp increase in fuel costs. In recent discussions with “Politico”, Sachsen‑Anhalt’s Minister‑President Sven Schulze (CDU) has revisited the topic of response mechanisms to rising gasoline prices, mentioning a potential re‑introduction of a discount as one option.
