Ifo and DIW: Economic institutes consider fuel discount to be wrong
The federal government wants to cushion the burden of high fuel costs for consumers with a discount on petrol. Economic researchers consider the measure to be misguided - it benefits the wrong people.
Two prominent German economic institutes, Ifo-Institut and Deutsches Institut für Wirtschaftsforschung (DIW), have criticized the fuel discount that came into effect today, saying it is the wrong approach. The discount, which reduces fuel tax by around 14 cents per liter from October 1 to December 31, benefits mainly frequent drivers with large cars, often households with higher incomes.
Experts argue that this measure does not effectively target those who need relief, such as commuters with long working distances, and that the 2.5 billion euros in costs could be better spent. They suggest that if relief is to be provided, it should be done in a more targeted way, such as by increasing the commuter allowance.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
