According to a media report, the federal government intends to implement its announced measures to relieve the pressure from fuel prices through two specific actions: a “gas price discount” and a “price cap.” However, the reporting by the newspaper “Bild” on Friday afternoon indicated that these two measures are not planned to be implemented simultaneously, but rather one after the other.
The “gas price discount” involves reducing the energy tax by 14 cents per liter; this reduction, coupled with a lower VAT, is expected to result in a 17-cent drop in the price per liter. In contrast, the “price cap,” which was demanded by the Social Democrats (SPD), would set legal maximum prices for petrol and diesel, similar to how this has been practiced in Belgium and Luxembourg. The precise details of this cap are not yet clear.
The newspaper noted that negotiations are also underway with the state premiers regarding the proposal. Under the current plan, the federal states would be expected to contribute to the multi-billion euro costs associated with the fuel price relief. According to “Bild”, officials are hoping to announce an agreement by Friday.
