Fuel crisis in Germany: The government is in a dispute over the form of support for drivers

Experts say that the main reason for the increases is the tense geopolitical situation. Since the outbreak of the war between the United States and Israel with Iran, gasoline prices have increased by over 52 euro cents per liter and diesel by as much as 68 cents. The market situation is additionally heated by the limited availability of oil on global markets.

The government promises support, but politicians argue

In response to rising prices, German Chancellor Friedrich Merz announced the introduction of relief for drivers.

The proposals vary - from reducing energy tax, through reducing VAT on fuels from 19 to 7 percent, to direct payments to selected social groups. However, the parties of the government coalition cannot agree on the form of support. The Social Democrats want a tax on excess profits and a price cap, the Christian Democrats are skeptical about these ideas, and Economy Minister Katherina Reiche focuses on selective subsidies.

Will the reliefs stop price increases?

Experts and commentators agree - even the best reliefs will not stop price increases if oil on global markets remains expensive.

“There is no instrument that would relieve citizens and companies without huge costs, without eliminating incentives to save energy and without an avalanche of bureaucracy,” writes Sueddeutsche Zeitung. He also reminds that the previous fuel discount cost the budget as much as EUR 1.6 billion in two months, and prices quickly returned to high levels anyway.

Political fever and driver uncertainty

Disputes within the government over the form of support only add "fuel to the fire of populists," say the media. Many Germans expect immediate help, others are skeptical about expensive subsidies.