Both the Minister-President of Mecklenburg-Vorpommern and the Governing Mayor of Berlin have voiced strong opposition to the planned expiration of the temporary fuel discount at the end of the month, a measure that was previously agreed upon by the governing coalition.
Manuela Schwesig, the SPD government head of Mecklenburg-Vorpommern, stated in a Friday edition of the Funke newspaper that she has “no understanding for this decision.” She pointed out that fuel prices remain high and would continue to rise if the discount simply lapsed. Schwesig added that both citizens and businesses require further financial relief. She suggested that the “excess profit tax” could offer a way to co-finance these measures, requiring mineral oil corporations to contribute. Furthermore, Schwesig advocated for implementing a price ceiling, citing the Luxembourg model, believing this could help keep fuel prices low in the long term.
Similarly, Berlin’s Governing Mayor Kai Wegner (CDU) demanded that the fuel discount be extended. Speaking to the newspapers, he argued that given the increase in gasoline prices-and with the summer holidays approaching-the discount must be extended past June. While he supports the discount’s extension, Wegner indicated that an even better measure than simply extending the fuel discount would be suspending the CO2 tax. He also considers a fuel price cap to be a viable way to provide relief.
The term “fuel discount” refers to a temporary 17-cent reduction in the fuel tax, which the coalition enacted in response to rising energy costs linked to the Iran conflict. Although the discount is set to expire in late June, reports from the Union and SPD factions suggest neither wants it renewed. This political conflict arises as both Mecklenburg-Vorpommern and Berlin are scheduled to hold elections in the autumn.
