The German social welfare organization, SoVD, has issued a warning against excessive price increases in the fuel market following the termination of the petrol discount. Michaela Engelmeier, the organization’s board chairperson, told newspapers of the Funke Media Group that there is no justification for companies to raise prices beyond merely compensating for the expired tax component. She stressed that the conclusion of the fuel discount should not signal the beginning of further profit opportunities for oil corporations. Therefore, she called on the Federal Cartel Office to closely monitor the market and act decisively against any possible price collusion or unwarranted surges in pricing.
Concurrently, Engelmeier advocated for the introduction of targeted direct payments for individuals in small and medium-income brackets. She argued that instead of adopting wide-ranging measures like the fuel discount, the focus should shift to providing precisely targeted relief where it is needed most. She noted that the technical prerequisites for delivering direct payouts to low-income citizens via linking tax IDs and bank account numbers (IBANs) are already in place. She urged the Federal Government to start utilizing this instrument. Furthermore, Engelmeier called for a permanent reduction in the electricity tax for private households.
The fuel discount had originally been implemented by the government in response to sharp increases in fuel prices, which were driven by the conflict in Iran. From May 1st, energy taxes on gasoline and diesel were reduced for two months, resulting in fuel prices decreasing by up to about 17 cents per liter. This measure is now expiring as planned. The direct payout mechanism mentioned by Engelmeier is designed to disburse state aid precisely using the citizen’s tax ID and registered IBAN, but so far, only a portion of the population has a bank account linked to the system, preventing its current use.
