Federal Economics Minister Katherina Reiche (CDU) has rejected demands for an excess profits tax to address high fuel prices. She called measures like fuel vouchers misleading and proposed raising the commuter allowance instead. The price surges stem from the Iran war.
Global prices for oil, petrol and diesel have surged due to the Iran war. The German government has limited petrol stations to one daily price increase and required future hikes to be justified to the Federal Cartel Office. A ZDF Politbarometer poll shows many Germans view these measures as insufficient.
Katherina Reiche rejected calls for an excess profits tax. "The economy knows no excess profits tax and the economy knows no excess profits either," she told Bild newspaper. She cautioned against a "constitutionally critical instrument," noting the Federal Fiscal Court deemed a temporary EU-wide excess profits tax after Russia's attack on Ukraine unconstitutional.
Measures like fuel vouchers or a fuel price cap are misleading, Reiche said. She advocated a prompt increase in the commuter allowance: "I myself suggested that we address the commuter allowance issue and temporarily raise the commuter allowance."
Taskforce chairs Armand Zorn (SPD) and Sepp Müller (CDU) are reviewing options including an excess profits tax, commuter allowance hike, or cuts to energy or vehicle taxes. The review will last six weeks. SPD leader Bärbel Bas endorsed skimming war-related corporate profits, and the Finance Ministry under Lars Klingbeil (SPD) is examining it. State transport ministers also demand such a levy.
Reiche assured: "We have no shortage problem in Germany. We have enough oil, enough gas, we are well diversified."
