Reiche rules out further relief on fuel prices – and points to empty coffers

The reason for the refusal of new aid, according to the minister, is the precarious financial situation of the federal government. The fuel price brake had been „ein sehr, sehr teures Instrument", which had cost the federal government many billions of euros, Reiche said. These funds are „momentan im Bundeshaushalt auch nicht zur Verfügung". Specifically, she also warned about the effectiveness of a national price cap: „der Weltmarkt nicht darauf reagiert, wenn Deutschland einen Deckel einzieht" – the costs remain with the state, while the price-dampening effect on the domestic market fails to materialise.

Criticism from the Opposition

There is sharp criticism of the minister's line from the opposition. SPD General Secretary Tim Klüssendorf had previously spoken out in favour of a fuel price cap, as had already been discussed during the Ampel era. He argues that rising fuel costs burden low-income earners and commuters in particular and that targeted relief is needed. The federal government, however, is pursuing the line of relying on market instruments and competition rather than new subsidies.

Reiche justified the government's line by pointing to existing measures that are already intended to provide more transparency at the petrol pumps. The so-called 12 o'clock rule, according to which price changes at petrol stations only take effect from noon, as well as the tightened antitrust law, offer consumers better opportunities to compare prices and choose cheaper providers. This is intended to strengthen competition without further burdening the state budget.

Federal Government's Arguments

At the same time, the minister played down concerns regarding the supply situation: The supply of fuel is secured, there are no bottlenecks. She thereby rejected speculation that the federal government was also considering releasing strategic reserves or other more interventionist steps in view of price developments. Currently, according to Reiche, she sees no reason to do so.

The debate falls in a phase in which fuel prices at German petrol stations have picked up noticeably again. Just the day before, oil companies such as BP, Shell and other providers had raised their prices, which the opposition sees as evidence of the lack of state countermeasures. Consumer advocates warn that commuters and families in rural areas in particular are dependent on their cars and are suffering under the rising costs.

Market Situation and Outlook

The federal government's economic policy spokesperson also made it clear that the costs of a price cap would not be effective at the international level. A unilateral German move could not push down the world market price, while the costs would be fully charged to the federal budget. This reasoning is in line with assessments by economists, who consider national interventions in fuel markets to be of little effect.

Reiche left open whether and when the federal government will react to changing market conditions. She tied possible measures to the condition of significantly rising prices, but at the same time emphasised that there are currently no plans. The issue thus remains a political point of contention between the black-red coalition and the opposition, which is likely to gather pace in the coming weeks – especially since energy costs remain a classic battlefield in the Bundestag election campaign.

From the federal government, it was said additionally that the development on the international crude oil markets and at the petrol stations is being monitored closely. Should the situation worsen, it was said from government circles, consultations would take place in the interministerial crisis team. Concrete preparations for a new relief package have not, however, been launched. There are also no corresponding plans in the Finance Ministry at present, as reported from Berlin.