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(Reuters) – German Finance Minister Lars Klingbeil is examining additional ways to relieve consumers from rising fuel prices due to the Iran war, including introducing a windfall tax on oil companies, his ministry said on Thursday.
The money gained from the tax could be used to finance an increase in the commuter allowance, for example, among other measures being considered to lighten the load of low and middle income families, the ministry said.
Germany is not facing an energy supply shortage, but as the war enters its third week, there are concerns that sustained high prices could stunt the economy’s modest recovery.
The German government is already working on a bill that would allow gasoline stations to raise prices once per day and strengthens the federal cartel office’s ability to intervene.
Economy Minister Katherina Reiche, a conservative, said that there was no need for knee-jerk reactions to the higher prices, such as fuel discounts or taxing windfall profits.
“We are acting with sound judgment,” said Reiche on Thursday in the Bundestag lower house of parliament, where lawmakers were debating the package for the first time.
According to Chancellor Friedrich Merz’s conservatives, the package is expected to be passed by the Bundestag next week.
Der Spiegel news outlet first reported on the windfall tax proposal from the finance ministry, run by the Social Democrats who share power with Merz’s conservatives.
Reporting by Holger Hansen, Christian Kraemer and Miranda Murray, Editing by Madeline Chambers
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