Economists criticize the new fuel discount as “cynical”
Image: Mercedes‑Benz (illustrative)
The federal government plans to lower the fuel tax again starting in October. As was done in May and June, the tax on gasoline and diesel is set to be reduced by 14 cents per liter by the end of the year. Including the applicable value-added tax, this results in a total discount of 17 cents per liter at the pump. Economist Veronika Grimm harshly criticizes this measure in an article for the Kölner Stadt-Anzeiger.
Grimm describes subsidizing vehicles with internal combustion engines as “cynical” because it harms the younger generation. The economist warns against opportunistic policies aimed at avoiding displeasing voters, which could lead to voters turning away from established parties in frustration. “In this case, it affects both those who reject the climate impact of such measures and entrepreneurs who can only shake their heads at this short-sighted approach,” says the economist.
Grimm also sees a threat to necessary structural reforms because politics focuses too much on short-term goals. The resulting loss of prosperity for citizens could be more severe than temporarily higher fuel prices. This member of the Council of Economic Experts views a lack of understanding among policymakers about what is at stake. The public is very much aware of this.
Criticism of the fuel discount also comes from politicians and consumer protection advocates. Andreas Audretsch, vice chairman of the Green Party faction, called the return of the discount “insanity.” He demanded that the money go to the people rather than into the pockets of oil companies. He criticized the absence of a windfall profit tax.
Ramona Pop of the Federal Association of Consumer Centers criticized the federal government’s approach as poorly targeted and costly. She called for relief measures that specifically address households with low and middle incomes as well as the heating season. Additionally, reliance on fossil fuels must be reduced.
In addition to the fuel discount, the federal government has announced a fuel price cap set to take effect by January 1 at the latest. Talks with the oil industry are planned to ensure a stable supply.
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Thomas Langenbucher is an expert in electromobility with experience in the automotive and financial industries. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions for ecomento.de. Learn more.
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