In the continuing German fuel price crisis driven by Middle East tensions, economist Veronika Grimm warns against discounts to sustain high prices and curb demand, citing severe supply bottlenecks in the Strait of Hormuz. She critiques broad relief amid limited fiscal space.
Berlin. As Germany grapples with fuel price surges following government measures to cap daily hikes and tap oil reserves (reported March 12), Veronika Grimm, member of the Council of Economic Experts, urged restraint on further relief. "One should definitely keep hands off a fuel discount," she told RedaktionsNetzwerk Deutschland (RND).
Grimm highlighted supply constraints: 20 percent of global liquid gas and oil transits the Strait of Hormuz, disrupted by the US-Israel-Iran conflict. "We must keep incentives high to curb demand, otherwise we exacerbate the crisis," she said. Price hikes stem from refineries, under Federal Cartel Office investigation, rather than stations.
The government advances price transparency via a bill allowing changes once daily at noon; Economy Minister Katherina Reiche rejects broader caps due to fiscal limits. Grimm warned: "We cannot accustom the population that the state cushions total risk in every crisis."
Cartel Office President Andreas Mundt emphasized volatility and transparency; firms must prove compliance. The law targets passage before Easter.
Alternative proposals include DUH expert Constantin Zerger's push for cheaper Deutschlandticket and e-mobility, and Saxony-Anhalt Premier Sven Schulze's (CDU) energy tax cuts—which Grimm called bureaucratic.
