Bavaria’s Minister of Economics, Hubert Aiwanger of the Free Voters party, has sharply criticized the federal government’s efforts to lower fuel prices. Speaking to the television channel “Welt” on Tuesday, he stated that the government’s actions were “embarrassing to the core” particularly referencing the new requirement for price increases at gas stations to only occur once per day. He questioned the logic, stating, “Any ordinary citizen outside knows this cannot work. If I say that you can only raise the price once a day, that this will result in lower prices”.
Aiwanger directed his criticism toward the Federal Minister for Economic Affairs, Katherina Reiche (CDU), and Chancellor Friedrich Merz (CDU), suggesting they should have foreseen the issue and acted preemptively. He accused them of merely wasting time, possibly as a tactic to appear active without achieving any concrete results.
Furthermore, he dismissed the revised increase to the commuter subsidy, which Reiche reportedly favors, as being “not constructive enough, far too delayed, and not impacting everyone as necessary”. He argued that the necessary relief should be at the gas pump, not postponed via taxes. Instead, he advocated for the abolition of the CO2 price and a reduction in energy taxes.
He added that the CO2 levy is fundamentally flawed because it is imbued with political and ideological agendas, suggesting it aligns with the platform of the Greens. Although they are not in government, he claimed its influence pervades mainstream policy, and that “this golden calf CO2 tax must now be slaughtered”.
Aiwanger dismissed concerns about how the government would fund a potential removal of the CO2 price. He argued that critics’ calculations regarding lost tax revenue at the fuel pump are flawed. Instead, he asserted that the revenue loss would be offset by economic improvements. He contended that the current high fuel prices are harming the economy, and if the economy performs better, tax revenues will naturally increase, thus refinaning any reduction at the gas pump through improved economic output.
Currently, revenue generated from the CO2 price flows into the Climate and Transformation Fund (KTF) in Germany, which supports initiatives like expanding e-charging infrastructure and boosting the hydrogen economy. The European Emissions Trading System for buildings and road transport (EU-ETS 2) is slated to replace the national CO2 price starting in 2028.