Germany Pushes Oil Firms to Pass on Fuel Tax Cut

German Finance Minister Lars Klingbeil has called on oil companies to pass on the government's energy tax cut to consumers at the pump. The government has temporarily reduced the tax on petrol and diesel by around €0.17 per litre, a measure expected to deliver relief worth around €1.6bn. It was introduced in response to rising energy prices linked to the conflict in Iran and broader global market pressures.

According to the cartel authority, although the reduction has largely been reflected in prices, some petrol stations have paradoxically raised them. Klingbeil said companies should be held accountable and must not profit from the measure. He is also pushing for a windfall tax on energy industry profits.

The issue arises against a backdrop of economic slowdown in Germany and growing political pressure on the government. The conflict in the Middle East is compounding the difficult economic outlook and deepening tensions between the US and Europe, with Berlin calling on Washington to end the fighting and return to negotiations.

(reuters)