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  • IW Chief Hüther Warns Against Fuel Price Caps Amid Energy Crisis

    Daily Pulse April 8, 2026

    IW Chief Hüther Warns Against Fuel Price Caps Amid Energy Crisis

    IW Chief Hüther cautions that price caps on fuel would diminish incentives for efficiency in fossil fuel usage.

    In an interview with the “Rheinische Post,” Hüther argued that measures such as the commuter allowance are inadequate, as they disproportionately benefit higher earners. He suggested targeted compensation for low-income households through flat-rate payments and proposed increasing the mileage allowance for working citizens receiving citizen’s income. Economist Kooths from the Kiel Institute for the World Economy emphasized that higher prices effectively encourage resource conservation and exploration of alternatives. He criticized EU tax reductions on gasoline and diesel for merely stimulating demand, which could lead to increased procurement costs without significant relief for domestic consumers.


    For journalistic integrity, this report was summarized from: deutschlandfunk.de