The Minister-President of Saarland, Anke Rehlinger (SPD), has introduced a proposal in the Federal Council to implement what is known as the “Luxembourg Model”-a system where the state sets maximum prices for fuel.
Speaking to the TV channel “Welt” on Friday, Rehlinger noted that Saarländers have long been aware of the fuel pricing structure in Luxembourg, and she strongly believes that this system warrants a close re-examination. She argued that simply attempting to keep the profits of oil conglomerates down and subsidizing consumers with tax money cannot be a sustainable long-term solution; structural changes must be made beforehand.
She views this model as a viable and sensible contribution. “Luxembourg is not known for its socialist activities, so I believe it is justifiable,” Rehlinger stated, adding that she found it confusing why the Federal Minister of Economic Affairs had not taken a closer look at this concept.
Rehlinger continued that Luxembourg demonstrated a successful, alternative mechanism. “We see in Luxembourg that there is a good, different alternative. And again, this has been functioning there for many, many years. And what works well there could be a good model for us, too.”
Under the Luxembourg system, the Ministry of Economy establishes maximum prices for gasoline, diesel, and heating oil. Although prices are typically reviewed twice a month, more frequent adjustments are often implemented during periods of significant market fluctuations.
