Germany's Federal Transport Minister Patrick Schnieder (CDU) has tempered hopes for an extension of the country's fuel tax relief, telling the Handelsblatt newspaper that the government's fiscal capacity has its limits. "The state eventually reaches the boundary of what it can do," Schnieder said in an interview published on Thursday. He added that his primary concern lies with the commercial freight sector, which has a direct impact on the cost of everyday goods.
Rising transport costs, he noted, are passed on to consumers, making groceries and essential items more expensive, a burden felt most acutely by smaller businesses.
The fuel tax reduction, which currently lowers the tax rate on both petrol and diesel by roughly 17 cents per litre, is set to expire at the end of June. The measure has cost the federal government an estimated 1.6 billion euros. A number of politicians across the political spectrum have already voiced support for extending the relief, particularly if the ongoing conflict involving Iran continues to affect global energy markets.
Addressing concerns about potential fuel shortages, Schnieder said there is no immediate risk. Germany currently produces around half of its kerosene domestically and imports the rest, he explained. While the situation in the Persian Gulf could eventually pose challenges if it deteriorates further, the country is well-prepared for the weeks and months ahead. "Summer holidays will not fail because of a lack of kerosene in Germany," the minister assured.
Schnieder firmly rejected proposals for measures aimed at reducing fuel consumption, such as car-free Sundays or a motorway speed limit. He argued that government intervention on this front is unnecessary. "Anyone who drives at 200 km/h on the motorway knows their tank empties faster, and they feel it in their wallet too," he said.
The minister stressed that fossil fuels have no place in Germany's energy future. The government, he said, is actively driving the transformation of the transport sector, though the process takes time. Among the measures he highlighted were the purchase subsidy for electric vehicles and funding programmes for electric drivetrains in heavy commercial vehicles. "We are setting the right conditions," Schnieder said.
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