The government's measures to combat rising fuel prices in Germany caused by the Iran conflict have been ineffective.
“Gas station discounts and price caps distort market values; this is the wrong way to go. I also have a negative opinion of the excess profit tax“, Veronika Grimm, a member of the German government's advisory council for economic development, told the Rheinische Post newspaper. She called the new rule, which allows gas station prices to increase only once a day (at 12:00), “probably the lesser evil”. Grimm added that people expect something to be done, “so the government does something“.
As the publication notes, amid rising fuel prices, the expert also advocated for speed limits on the autobahns. “That won't hurt. It might even be a sensible signal to people to take the situation seriously“, Grimm said. “Many countries in the Global South have already introduced drastic measures, such as mandatory teleworking and restrictions on vehicle use. The more we consume, the more it ultimately affects these countries“, she emphasized.
Amid the conflict over Iran, gasoline and fuel prices have risen sharply across Germany. On April 2, diesel prices in Germany reached a record high, averaging 2.30 euros per liter. At the same time, the price of Super E10 gasoline increased to 2.13 euros per liter, the highest since the beginning of the year.