A study from RWTH Aachen suggests that the fuel subsidy implemented by the federal government is not highly targeted. According to information released by the university on Friday, only 8.6% of the state relief funds reach households classified as being in energy poverty. The monthly cost for the discount amounts to approximately 330 million euros. While the average relief for a household owning a combustion engine vehicle is close to 11 euros per month, much of the funding reportedly goes to households that do not have comparable financial burdens, explained Karl Seeger from the Chair of Energy System Economics. The study utilized data from the Federal Statistical Office and the Socio-economic Panel. Another key finding concerns its impact on demand behavior; the subsidy is estimated to increase the fuel consumption of private households by about two percent. Given the current scarcity of crude oil imports from the Middle East, this added demand could worsen the situation and exert upward pressure on prices, according to Aaron Praktiknjo of RWTH Aachen. Therefore, the fuel discount is concluded not to be a targeted measure for relieving the financial strain on needy households.
Economy / Finance
