Al Jazeera
Oil companies must pass on the benefits of Germany’s fuel price discount to consumers, German Finance Minister Lars Klingbeil told the Reuters news agency, as his government seeks to cushion the effects of the energy price shock caused by the war.
The government has temporarily cut Germany’s energy tax on diesel and petrol by about 0.17 euros per litre, relief worth around 1.6bn euros ($1.88bn) as part of a package of measures to mitigate the fallout from soaring global prices.
The unprecedented energy price disruption is impacting many economies, including Germany. Europe’s largest economy was already struggling to regain momentum after the pandemic, as high costs and competition from China strain its export-driven model.
The energy tax cut took effect today and will remain in place for May and June.
The oil companies must accept their responsibility, Klingbeil said in an interview.
“We in politics will be watching this closely, but these reductions must be passed on,” said Klingbeil, who is also pushing for a windfall tax on energy profits.
The German Federal Cartel Office said the fuel price discount appeared to have been largely passed on to consumers, though it also said some petrol stations had raised prices.
The government has temporarily cut Germany’s energy tax on diesel and petrol by about 0.17 euros per litre, relief worth around 1.6bn euros ($1.88bn) as part of a package of measures to mitigate the fallout from soaring global prices.
The unprecedented energy price disruption is impacting many economies, including Germany. Europe’s largest economy was already struggling to regain momentum after the pandemic, as high costs and competition from China strain its export-driven model.
The energy tax cut took effect today and will remain in place for May and June.
The oil companies must accept their responsibility, Klingbeil said in an interview.
“We in politics will be watching this closely, but these reductions must be passed on,” said Klingbeil, who is also pushing for a windfall tax on energy profits.
The German Federal Cartel Office said the fuel price discount appeared to have been largely passed on to consumers, though it also said some petrol stations had raised prices.
