German Economy Minister Katherina Reiche cautioned Thursday that any new relief measures must be considered carefully as fuel prices climb amid the US-Israeli war with Iran. Disruptions near the Strait of Hormuz, attacks on Iranian fuel installations and Tehran’s retaliatory strikes in the Gulf have tightened global supplies and pushed up pump prices.
Since late February, just before the conflict escalated, fuel costs have risen sharply. Data from the General German Automobile Club show diesel up about €0.42 per liter and E10 petrol roughly €0.27 per liter; the rate of increase has slowed recently. Nationwide daily averages on Wednesday were €2.044 per liter for unleaded E10 and €2.167 per liter for diesel. Oil prices also jumped after Qatar reported significant damage to a large liquefied natural gas facility following Iranian strikes.
Speaking in the Bundestag, Reiche said Germany does not need “activism” “20 days after the war,” and stressed the government is taking measured steps. Policymakers are weighing a range of options — a fuel price cap, discounts at the pump or a windfall tax — but she said each choice must be balanced against its costs and effectiveness.
The governing coalition has proposed a fuel-pricing package that would limit how often station prices can rise to once daily at noon while allowing cuts at any time, and would tighten antitrust enforcement. The Bundestag aims to rush the bill through next week, with the Bundesrat expected to debate it the following Friday. Observers are divided on whether the measures will actually lower prices.
Political responses vary. SPD deputy floor leader Armand Zorn said the government would “adjust” if the crisis continues and called a windfall tax a topic of discussion, arguing it’s wrong to profit from war. SPD Finance Minister Lars Klingbeil has reportedly considered a special tax to capture excessive crisis profits. CDU deputy Sepp Müller warned further action could follow if companies exploit the situation. Opposition parties, including the Left, say the government’s response is insufficient; Left leader Ines Schwerdtner said many people are being left behind. The Greens back a windfall tax, and the Left also proposes cheaper public transport.
Edited by Sean Sinico