Germany is weighing a windfall profits tax on oil majors, with the proceeds aimed at easing commuters’ costs by boosting the commuter allowance amid sharply higher fuel prices.

The proposal would channel revenue from the tax into higher commuter support, reducing the financial burden on professionals who rely on daily travel.

The windfall tax would target excess profits of mineral oil companies, using the funds to relieve households and sustain daily commuting costs.

The government plans measures to curb high fuel prices, including a daily price-change cap for gasoline stations and tougher enforcement against price spikes by the antitrust authority.

As part of broader relief, a two-cent cut in the electricity tax is proposed, aiming to provide lasting household relief.

At a March 27 meeting in Berlin, wealthy individuals are expected to be asked to present concrete consumer-relief proposals and discuss the future of the energy transition.

An expedited bill seeks to push cartel-law changes and related relief measures through the Bundestag and Bundesrat by month’s end in response to gasoline-price concerns tied to the Iran conflict.

Klingbeil is seeking EU-wide cooperation, hoping the European Commission will propose a framework applicable to all 27 member states.

He is coordinating with his ministry to secure an EU-wide agreement for implementing a cross-border solution.

The approach draws on a 2022 crisis rule that taxed crises-era prices 20% above the two-year average, with a potential yield of over €2 billion and used as a model for current relief.

Lower Saxony’s energy minister calls for political action against high energy and fuel prices, arguing for costs to rest on mineral oil firms with excess profits, and urges a special energy ministers’ meeting.

Several leaders advocate a windfall tax on oil majors to fund permanent relief, including lowering the electricity tax to benefit all consumers.