Despite the continued rise in fuel prices caused by the conflict in Iran, Jens Südekum, an economist and economic adviser to Finance Minister Lars Klingbeil (SPD), cautioned against hasty political measures.
“Let’s not rush into discussions about tools such as a fuel discount” Südekum said in the Saturday edition of the “Neue Osnabrücker Zeitung”. “Doing so creates expectations that may have no real basis. Moreover, Europeans are not as directly and heavily dependent on gas and oil supplies from the Gulf region as, for example, China. The supply chain, as far as we know, is not in danger, and prices could drop quickly again”.
When asked whether policy should intervene immediately, the Düsseldorf economist replied, “In my view, we are not at that point yet – and we likely will not be. If the conflict eases soon and the Strait of Hormuz becomes navigable again, energy prices will fall like they have in the past”.
Südekum criticised the large profits made by U.S. oil and gas firms. “China, as the largest importer of Gulf-region energy, is hit hardest. We suffer from rising world‑market prices while the exporters in the United States see their coffers open” he told the “noz”. “We need to keep that in mind”. He also noted that rising gasoline prices are affecting U.S. motorists. “The LNG companies’ profits benefit Trump. Higher fuel prices could harm his campaign. That might push him toward ending the war quickly”.