Drone attack on Saudi pipeline: Left and SPD call for fuel price caps
After the east-west oil pipeline in Saudi Arabia was shut down, Ines Schwerdtner and Dietmar Woidke are calling for government intervention to combat rising fuel prices.
Quick Look
- Oil prices rise after a drone attack on a Saudi pipeline.
- Ines Schwerdtner (Left) and Dietmar Woidke (SPD) are calling for government measures such as a fuel price cap and the skimming of excess profits to protect consumers from price shocks.
AI-generated summary
Why It Matters
Saudi Arabia has shut down the east-west pipeline for security reasons after a drone attack. Shipping traffic in the Strait of Hormuz is severely affected by the war between the USA and Iran.
After the drone attack on Saudi Arabia's east-west oil pipeline, the co-federal chairwoman of the Left Party, Ines Schwerdtner, is calling for government measures to counter the expected further rise in fuel prices. The federal government now needs a concrete emergency plan against “the impending price shock,” said Schwerdtner. Chancellor Merz should not wait again until gasoline and diesel become "unaffordable" before distributing billions in aid, which in the end also secures the profits of the energy companies.
The excess profits that oil companies put into their pockets as a result of crises must be skimmed off and people with small and medium incomes must be specifically relieved, said Schwerdtner. Rising oil prices would particularly affect people who rely on their cars in everyday life. The price increase also reaches the supermarket checkout through higher costs for transport, production and heating. There needs to be a cap on profit margins so that companies cannot sell fuels far above their procurement costs.
Saudi Arabia has temporarily shut down its key east-west pipeline after a drone attack, calling it a precautionary measure. The approximately 1,200 kilometer long pipeline runs across the Arabian Peninsula. It allows the world's largest crude oil exporter, Saudi Arabia, to bypass the Strait of Hormuz. Shipping traffic in the strait has come to an almost complete standstill because of the six-month-long war between the United States and Iran.
The closure of the pipeline could push oil prices further higher. The price of oil for a barrel of the reference Brent variety from the North Sea rose above the $100 mark on Wednesday.
“We urgently need a fuel price cap”
Brandenburg's Prime Minister Dietmar Woidke (SPD) also spoke out in favor of a rapid cap on fuel prices - which Federal Economics Minister Katherina Reiche (CDU) has so far rejected. “We urgently need a fuel price cap,” said Woidke. Justice must also prevail at the gas station. It cannot be the case that the oil companies are making extra profits while millions of commuters despair because of the far too high fuel prices.
Woidke referred to the relief for consumers in other states. In Luxembourg, Poland, Belgium and the Czech Republic, maximum prices are regularly adjusted flexibly to the market situation, said Woidke. This promises falling fuel prices and provides planning security.
What to Watch
AI outlook — possibilities, not facts
Further price increases for fuels in Germany.
Likely · Within days
Open Questions
- How long will the pipeline remain shut down?
- Will the federal government introduce a price cap?
