Economists have criticized the planned reduction of the energy tax for the months of May and June, ahead of a vote in the Bundestag.
Tomaso Duso, Chairman of the Monopoly Commission, stated in a report for the “Rheinische Post” that the “gas station discount is the wrong instrument”. He explained that during times of scarcity, maintaining price signals is crucial. He warned that dampening these signals weakens the strongest incentive for people to conserve energy. Duso further noted that since high-income households would drive significantly more than low-income households, the financial relief would “by all accounts benefit those who need it the least”. Instead, he suggested that if relief is desired, it should be highly targeted, arguing that direct payments to low-income families would be more effective and would not distort existing price signals.
Alternatively, the Social Association VdK advocates for different measures. VdK Chair Verena Bentele expressed doubt as to whether the planned 17-cent-per-liter energy tax reduction would actually reach the people. She suggested that instead of investing billions in short-term measures, a more sustainable and equitable solution would be to expand barrier-free and reliable local public transport, paired with a permanently affordable Deutschlandticket and a social ticket.
The coalition government intends to lower the energy tax on gasoline and diesel by 17 cents per liter for a two-month period. Both the Bundestag and the Bundesrat are set to vote on the measure this Friday.