The Organization for Economic Cooperation and Development (OECD) has announced measures such as fuel discounts or higher commuter allowances as a response increased energy prices discouraged. “These demands are of course understandable, as the higher petrol and diesel prices reduce the purchasing power of households,” said the Germany expert der OECDRobert Grundke, of the Reuters news agency. “However, these measures also cost a lot of money.”
Increased spending on defense, infrastructure and health would already place a heavy burden on government finances. The Industrialized Nations Organization therefore recommends focusing any support measures specifically on poorer households. They are most affected by the increased gas station prices. “These measures should be limited in time from the outset,” emphasized Grundke.
Maintain savings incentives, expand wind and solar energy
In addition, energy saving incentives should be maintained so as not to increase existing shortages. The energy price brake of the then traffic light government was a good solution for this. “However, in order to target such a model specifically at needy households, a better data infrastructure would be needed to better identify needy households,” said Grundke. Germany could take a cue from other OECD countries.
In addition, the expansion of Wind and solar energy systems central to reducing dependencies on energy imports, the expert continued. There should also be subsidies for this fossil fuels be dismantled. According to Grundke, greater use of renewable energies would make Germany more independent of oil price fluctuations on the world market.
IEA recommends reducing road traffic congestion
The International Energy Agency (IEA), in turn, recommends more Home officelowering the speed limit on roads and switching to public transport to reduce fuel consumption. Because 45 percent of oil consumption comes from transport. The IEA in Paris said that avoiding air travel and alternative energies in industry could also reduce oil demand during the crisis. The IEA member countries have started releasing strategic oil reserves, but this cannot fully compensate for the extent of the disruption.
It would also allow governments to focus their support on the consumers who needed it most. Targeted support mechanisms are more effective than broad-based subsidies, the energy agency said.
Because of the Iran war Oil and gas prices have risen sharply in recent weeks. After the black-red coalition introduced a fuel price package in the Bundestag, the opposition called for further relief for consumers and companies. Also Federal Minister of Economics Katherina Reiche (CDU) reacted cautiously to calls for a fuel price cap or a fuel discount. You have to consider what costs a measure causes and what the benefits are, said Reiche in the Bundestag.