Despite fuel prices continuing to climb amid the Iran conflict, economist Jens Südekum-who advises Federal Finance Minister Lars Klingbeil (SPD)-warned against hasty political measures.
“We should not rush into discussions about tools such as a fuel‑tax rebate” Südekum told the “Neue Osnabrücker Zeitung” on Saturday. “Such talk sets up expectations that may not have a solid basis. Moreover, we Europeans are not as directly or heavily dependent on gas and oil supplies from the Gulf region as China is”. He added that, based on what we currently know, supply is not under threat and that prices could quickly fall again.
When asked whether the government should intervene promptly, the Düsseldorf economist said, in his view, that we are not yet at that point and probably never will be. “If the conflict calms down and the Strait of Hormuz becomes navigable again, energy prices will fall as history shows” he said.
Südekum criticized the large American oil and gas companies for profiting. “China, as the largest importer of Gulf‑region energy, suffers the harshest hit. We endure rising prices worldwide, while US exporters rake in the profits” he told the “noz”. He also noted that US motorists are facing higher gasoline prices. “The LNG firms are making a fortune with Trump’s policies. Rising fuel costs could weigh on his popularity-perhaps giving him an incentive to push for a quick end to the war”.
