German association rejects extending discount on gasoline and diesel

The German consumer association opposes extending the discount on gasoline and diesel, a measure that ends this month and has cost the state 1.6 billion euros. Instead, it proposes lowering the electricity tax to relieve households, thereby redirecting public spending towards more equitable relief.

German consumer association headquarters interior, officials examining a large digital screen showing a red declining graph of fuel tax discount ending this month, a green rising chart of electricity tax reduction proposal, one hand pointing at the screen while another holds a calculator showing 1.6 billion euros saved, technical illustration style, clean modern office background, financial data visualized as holographic bar charts and pie graphs, precise engineering visualization, cool blue and white lighting, sharp focus on documents and digital interfaces, photorealistic render, realistic paper textures and screen reflections

The energy transition and the electricity tax as a lever ⚡

The technical proposal is based on reducing VAT or the charges of the electricity tax, which in Germany represent 40% of the final price. This measure would directly benefit households, especially those using heat pumps or electric cars. Unlike the fuel discount, which subsidizes fossil fuel consumption, lowering the electricity tax incentivizes electrification and reduces oil dependence, aligning with climate goals.

Germany discovers that giving away gasoline was not the solution 🚗💨

It seems that in Germany they have crunched the numbers and realized that 1.6 billion euros in gasoline discounts do not turn an SUV into an eco-friendly scooter. Now, instead of continuing to subsidize the roar of engines, they propose lowering the electricity tax. So, they have understood that plugging in a car is cheaper than filling the tank, but only if the state does not take half in taxes. Good thing someone woke up before the budget went up in exhaust fumes.