Hubig advocates flexible fuel price cap as records hit amid ongoing crisis

With the Austria-model daily price cap now in place, record diesel prices spark fresh calls for relief. Consumer Protection Minister Stefanie Hubig (SPD) supports Vice-Chancellor Lars Klingbeil's flexible cap idea, while Greens and economists push speed limits.

Fuel prices have continued to surge since the Iran war began. Building on Economics Minister Katherina Reiche's March announcement and the black-red coalition's rollout of the Austria model on April 1—limiting pump price rises to once daily at noon—the ADAC reported a diesel record of 2.346 euros per litre on Good Friday.

In an interview with the Rheinische Post, Stefanie Hubig urged effective short-term measures and endorsed Klingbeil's proposal for a flexible price cap on petrol, diesel, and heating oil to prevent extreme fluctuations, drawing on examples from Belgium and Luxembourg. "Mobility must remain reliable and affordable even in tense times," she said, emphasizing impacts on families and commuters.

Other options under review include raising the Pendlerpauschale commuter allowance, lump-sum relief via vehicle tax data, or cuts to energy and electricity taxes.

Economist Veronika Grimm again opposed caps, favoring a speed limit. Greens leader Katharina Dröge called it "long overdue" for energy savings, and Left's Agnes Conrad advocated 120 km/h on motorways to reduce accidents, fuel use, and emissions—long pushed by SPD, Greens, and Left against CDU/CSU and FDP resistance.

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Building on a cartel investigation into price surges, the German government plans to limit gas stations to one daily gasoline and diesel price increase, following Austria's model, while also releasing national oil reserves to ease costs driven by the Iran war.

Germany's Economics Minister Katherina Reiche is considering limiting fuel price increases at gas stations to once per day, following Austria's example. The rule has been in place there for years to curb fluctuations. Viennese economists highlight benefits in transparency but warn of limited impact.

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German Finance Minister Lars Klingbeil, along with counterparts from Spain, Portugal, Austria and Italy, has urged the EU Commission to examine a windfall profits tax on oil companies. The letter cites high fuel prices due to the Iran war. The measure would supplement national initiatives.

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