German consumer advocate urges lower electricity tax after fuel rebate ends

As Germany's fuel rebate program concludes, consumer advocate Ramona Pop is pressing the government to provide financial relief elsewhere, specifically by reducing electricity taxes for households.

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not become the starting signal for excessive profits

Pop, head of the Federation of German Consumer Organizations (vzbv), warned that the end of the fuel rebate must not become an "opportunity for excessive profits" for mineral oil companies. She argued there is no justification for price increases that exceed the expired tax relief. Pop stated that companies should not hesitate to lower prices when crude oil costs decrease, just as they immediately pass on increases. She emphasized that the Federal Cartel Office must closely monitor these developments.

The fuel rebate, part of the government's relief package, significantly lowered taxes on gasoline and diesel. Its expiration means consumers may soon face higher fuel prices. Pop's call to lower electricity taxes aims to cushion this impact. She believes this measure would not only ease the financial burden on consumers but also make the transition to climate-friendly energy alternatives more attractive.

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There is no reason to raise prices more than the expired tax relief.

Data from the ifo Institute in Munich suggests the fuel rebate's benefits were only partially passed on to consumers. For diesel, only about twelve cents per liter were passed on, significantly less than the 16.7 cents tax reduction. However, for Super E5 and Super E10 gasoline, the pass-on rate was closer to the tax reduction, at 17 and 16 cents per liter, respectively. This mixed reception of the fuel rebate further strengthens Pop's argument for alternative relief measures.

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If you pass on rising crude oil prices immediately, you must not brake when prices fall.