Sharp criticism of the fuel discount: Economics Schnitzer advocates direct payments to poorer households

The latest figures from the Ifo Institute show that the fuel discount has not yet been fully received by drivers. Economist Monika Schnitzer recommends that the federal government pay “targeted money to particularly burdened households”.

In view of the incomplete passing on of the fuel discount to drivers, the economist Monika Schnitzer insists on more targeted relief. The fuel discount is "expensive, relieves even those who don't need support, and weakens the price signal that is supposed to encourage people to save when fuel is in short supply," criticized the chairwoman of the Advisory Council for the Assessment of Overall Economic Development in the "Augsburger Allgemeine."

She called on the federal government to “finally” create a mechanism through which money could be paid out directly to low- and middle-income households. The fuel discount was introduced temporarily on October 1st. The federal government is waiving energy and VAT totaling 16.7 cents per liter. According to the Ifo Institute, in the first five days on average the gas stations did not pass on the entire mathematically possible price drop of around 17 cents per liter to customers. For diesel and Super E10, the discount was on average around 15 cents and for Super E5 it was a good 16 cents.

The warnings of many economists about wasting taxpayers' money have been confirmed, Schnitzer told the "Augsburger Allgemeine". It is difficult to understand "that four years after the energy crisis, Germany still does not have a fully functioning mechanism with which money can be paid out to particularly burdened households at short notice and in a targeted manner," she criticized, according to the newspaper. "Technically this would be possible in principle, but the necessary conditions should have been created more consistently in recent years."

From the economist's point of view, the insufficient passing on of the fuel discount is primarily due to insufficient competition in the petroleum industry. The competition authorities are called upon here, she said. With its expanded powers, the Federal Cartel Office should consistently continue to investigate possible structural competition problems at the refinery and wholesale level, Schnitzer warned.