German leaders discuss up to 25-cent fuel price relief with states

Germany is weighing a fuel-price relief measure that could lower the cost at the pump by up to 25 cents per litre. Chancellor Friedrich Merz and Finance Minister Lars Klingbeil held a special conference with the heads of the states, including Gordon Schnieder of Rheinland-Pfalz and Olaf Lies of Niedersachsen, to coordinate the approach. After roughly ninety minutes, participants had not settled on a specific mechanism.

Among the proposals discussed were a price-cap system modeled after Luxembourg and direct cash disbursements to households. A profit-tax on fuel suppliers, favored by the SPD, was rejected as ineffective for immediate relief. Finance Minister Klingbeil remains active on the issue, planning to raise it again at upcoming EU finance talks. The government aims to implement the measure early in the coming month.