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Germany's Draft Fuel Price Cap Draws Sharp SPD and Green Criticism

Critics warn the draft's strict activation tests plus a three-month limit would delay help and could leave oil companies' extra margins intact.

Overview

  • The federal Economics Ministry has produced a draft law to enable a temporary fuel price cap meant to start around January 2027 if formally activated by ministers under the new rules.
  • The draft requires Germany's pump-price rise to exceed the EU average by more than five percentage points for three consecutive weeks before a cap can be set and limits any cap to three months.
  • SPD figures including Sebastian Roloff, Lars Klingbeil and other ministers publicly say the design is ineffective because it authorizes a cap without guaranteeing timely, visible relief at the pumps.
  • The Greens and other critics call instead for a windfall-profit tax on oil firms, arguing a tax or a formula-based daily maximum price would prevent companies from profiting during the price spike.
  • Public pressure is high: an NIM‑Institute survey shows about 71% back a price cap and 66% support a windfall tax, while many drivers report already cutting trips, driving more efficiently, or switching toward electric cars.