German Opposition Leaves Door Open for Excess‑Profit Tax to Tackle Rising Gas Prices
Economy / Finance

German Opposition Leaves Door Open for Excess‑Profit Tax to Tackle Rising Gas Prices

Steffen Bilger, the United Nations parliamentary group’s first managing director in the Bundestag, said he does not rule out an excess‑tax or direct subsidies to curb fuel prices. “We have implemented several measures to lower gas prices, and we keep a close eye on the situation at gas stations” he told the TV network “Welt” on Wednesday.

Bilger announced that the coalition committee should discuss new policy options. “Many of the proposals that are floated right now sound good at first glance, but they are not easily enforceable from a legal standpoint. Therefore we should focus on solutions that truly help and make sense” he added.

He stressed that nothing should be excluded. “We have already taken steps in the coalition to relieve consumers from rising energy costs. For electricity we lowered the electricity tax and net charges, and increasing the commuter flat‑rate helps many who are still heavily affected by price hikes” Bilger explained. Unlike the pre‑election promises of the coalition partners, the electricity tax was reduced at the start of the year only for industrial production, forestry, and agriculture, not for private households.

Although he generally welcomed the Austrian petrol‑price model, Bilger acknowledged doubts about its effectiveness. He noted that the idea of setting a high first‑of‑day price is understandable. “In the past we have already required gas stations to make their prices transparent, so customers can check online where the cheapest refueling is” he said. “But it is clear that the current crisis is being exploited – German prices have become markedly higher than in neighboring countries, with many daily price increases – and we must respond. For that reason I support implementing this Austrian model now: one day‑old price that can only fall. I believe this helps prevent price gouging”.