The German Bundestag has given its approval to the government's planned fuel tax reduction. Members of parliament voted on Friday in favor of lowering the mineral oil tax, which is intended to make fuel prices cheaper by 17 cents per liter for two months. The tax reduction is scheduled to take effect from May 1, which is why the Bundesrat was set to deliberate on it in a special session immediately afterward.
According to the draft law, the fuel discount is intended to provide relief totaling 1.6 billion euros for the economy and consumers. CDU financial expert Fritz Güntzler stated in the Bundestag that the reduction corresponds to "approximately ten euros for a tank refill". He characterized this as "also already a significant relief".
The opposition sharply criticized the fuel discount once again during the debate in the Bundestag. "This law is simply madness," said Greens parliamentary vice-chairman Andreas Audretsch. Kerosene is scarce, and gasoline and diesel prices have shot up "and in this situation, in this difficult position, you are introducing a law here with which you are also fueling the consumption of fossil fuels".
Many economists voiced similar criticism. "In my view, the fuel discount does not represent an adequate response to the current situation," Thomas Puls from the Institute of the German Economy (IW) told the "Rheinische Post". There is a global "undersupply of oil and diesel," which is why consumption must be reduced.
AfD member of parliament Kay Gottschalk declared before the vote: "We will agree to this law with a heavy heart, but we will agree to it." He described the relief as only a "drop in the bucket" that expires just in time for the holiday season. Doris Achelwilm from the Left Party criticized that the energy tax reduction is likely to "partly land with the companies".
The head of the Federal Association of Consumer Centers, Ramona Pop, also warned about this on Friday. "The fuel discount must not seep away to the mineral oil corporations. The federal government must ensure that the billion-euro aid is passed on completely to consumers," she stated. Direct payments would be the better and more targeted solution.
The industry itself has warned that there could be problems, at least in the first few days, especially because May 1 is a public holiday before a weekend. Delivery options would be severely limited during the first three days of the month as a result, explained the Federal Association of Independent Petrol Stations and Independent German Mineral Oil Traders.
If dealers fill their tanks beforehand, they would pay the old tax rate for it, which they would not recoup when selling, unless they do not pass on the tax reductions to customers in the first few days.
The Bundestag also voted on Friday for another relief measure from the energy prices that have risen since the beginning of the Iran war. Companies should receive the possibility to pay their employees a tax-free and levy-free premium of 1,000 euros. The states in the Bundesrat are scheduled to deliberate on the premium only in May.
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