The tax cut on fuel comes into effect today – a wrong instrument, says Green Party leader Dröge. Oil companies might not adjust prices accordingly.
The Greens in the Bundestag are dissatisfied with the tax cut on fuel, which will take effect for three months on June 1st.
Finance Minister Christian Lindner (FDP) was warned “that a price subsidy for petrol can end up with a relevant proportion of the mineral oil companies,” says parliamentary group leader Katharina Dröge of the “Neue Osnabrücker Zeitung”. “Calling for antitrust law does not help in this case, just choosing another instrument.”
Dröge responded to warnings that drivers would hardly benefit from the reduction in fuel tax because the oil companies might not lower prices significantly. Lindner asked the cartel office in the Bundestag on Tuesday to ensure that the relief actually reaches the gas stations.
That’s not possible, said Dröge. “The problem of deadweight effects lies in the price subsidy itself, whether it’s a fixed discount or a tax cut.” Your request to Lindner: “If the Minister of Finance is interested in skimming off excessive profits, the introduction of an excess profit tax can make sense.”