Berlin refrains from lowering petrol tax amid Iran war price spike

Germany will refrain from lowering taxes on petrol, officials said on Wednesday, after the escalating crisis in the Middle East caused a price spike at pumps in Europe's largest economy and beyond.

"That's not on the agenda," Economy Minister Katherina Reiche said when asked by journalists about a possible comeback of the three-month tax relief created to cushion the blow for consumers during the 2022 energy crisis that emerged after Russia's full-scale invasion of Ukraine.

Here are some details:

• Prices at German pumps surged this week, in some cases by over 20 cents to 2 euros per litre of regular petrol, or around $8.80 per U.S. gallon, including taxes

• The 2022 tax relief was issued by the previous German government to soften the shock of rising energy prices

• Many experts and climate activists criticised the measure at the time as an ineffective giveaway

• Monika Schnitzer, a leading economist, told Reuters on Wednesday that consumers should use less petrol: "Cancelling this (price) signal by offering a fuel rebate would mean that no one would change their behaviour, and the government would only incur high costs."

-Reporting by Christian Kraemer, writing by Thomas Seythal, editing by Miranda Murray/Reuters