The black-red coalition has decided against extending the fuel discount. This decision was reportedly reached by both factions during an internal meeting on Tuesday, according to the newspaper Focus, which cited internal party circles. Although a spokesperson for the coalition faction neither confirmed nor denied the report, the discount, which has been active since May 1st, was originally intended to be temporary for two months.
The federal government implemented the tax reduction of nearly 17 cents per liter to alleviate the burden on drivers facing sharply increased fuel prices following the Iran War. However, the fuel discount remained controversial within the coalition because there was uncertainty as to whether the oil conglomerates were fully passing the tax reduction on to consumers. Critics also argued that the scheme inadvertently provided support to higher-income households.
