Markus Söder, the Minister-President of Bavaria and head of the CSU, used the current spike in petrol and gasoline prices to spark a broader discussion on carbon‑pricing. He argued that if the Iran crisis drags on and the sharp increase in fuel prices is not curtailed by a simple price cut at the pump, policymakers might need to consider temporarily lowering the CO₂ tax on fossil fuels.
Söder told the TV show “Welt TV” on Thursday, “If nothing changes in two weeks, we must think about CO₂ again”. He warned that the ongoing fuel shortage could lead to “extremely high prices” in this phase, putting Germany and Europe at a competitive disadvantage compared to China and other global markets. “In that case, it would be wise to pause the CO₂ pricing until the crisis ends. This problem won’t last three years” he added.
While he acknowledged that the long‑term solution is still the development of CO₂‑free energy sources-including new technologies such as nuclear fusion-Söder stressed that a short‑term waiver would already provide significant relief. He described the suspension as merely “the first step towards a much more fundamental debate about the future of CO₂ pricing”. The goal is to address the fundamental impact that the current pricing has on the country’s competitiveness.
Söder also hinted at a European‑wide approach. “We will have to think very much in an EU context about suspending or reducing CO₂ pricing to keep our economies viable” he said. In the broader context, he called for a shift in the EU’s mindset: “The EU has to rethink how a comprehensive energy crisis could affect the continent’s economy-and it must move away from a too‑restrictive Green Deal mentality”.
In short, Söder wants to temporarily step back from the CO₂ tax while the fuel crisis unfolds, but also urges a deeper, long‑term discussion on how carbon pricing should fit within a competitive, European economy.