The government’s fuel discount, which has been in effect since the beginning of May, is set to expire on July 1st. According to reports citing leaders of the coalition’s task force on energy prices, the parliamentary factions of the CDU/CSU and SPD have reached an agreement to terminate the measure.
Armand Zorn, from the SPD, confirmed to the newspaper that after extensive discussions, they decided to let the discount lapse on June 30th, noting that the measure had been effective. Sepp Müller (CDU) supported this decision, emphasizing that extending the benefit was not financially sensible, as the government could not afford to take on new debt in its current fiscal climate.
However, both Müller and Zorn issued a warning to the mineral oil industry regarding significant potential price increases once the discount ceases. The coalition stated that it is prepared to intervene and prevent a possible price surge. These representatives clarified that they could respond quickly if the situation changes dramatically after July 1st, even during the summer holiday and recess periods. In such an event, the Bundestag could be convened for special sessions, and they expect the Länder (states) to cooperate through the Bundesrat.
Several relief measures are being discussed as potential responses to a renewed price spike. These include targeted subsidies for low-income car drivers, an increase in the commuter allowance, a lower energy tax, a reduction in the electricity tax for all citizens, the implementation of a fuel price cap, and a windfall tax targeting oil corporations.
At this time, details remain unclear about which specific measure would be implemented if prices suddenly surge. Furthermore, Müller and Zorn did not specify a precise price threshold at which the coalition intends to react. Müller did, however, announce that antitrust regulations will be further tightened, with the goal of “cleaning up the market and creating greater transparency.”
