Berlin still grappling for response to soaring fuel prices

The German government is still in the midst of deliberations on how to best combat soaring fuel prices, Finance Minister Lars Klingbeil said on Friday, amid growing calls for Berlin to take action.

"We are currently looking for solutions," Klingbeil said ahead of a meeting of EU finance ministers in Dublin.

His comments come after German petrol and diesel prices surged to new all-time highs this week, as energy prices remain under pressure worldwide due to the ongoing war on Iran and disruptions to shipping in the Strait of Hormuz, a key maritime route for the global oil and gas trade.

On Thursday, a litre of diesel cost an average of €2.471 ($2.84) across Germany, according to the ADAC motoring association, nearly two cents more than the previous day.

German Chancellor Friedrich Merz said on Tuesday that the government would "react to price gouging," but he is yet to reveal any concrete measures.

Underscoring the public mood, Greenpeace protested excess profits at oil companies with a high-profile stunt on Friday.

The chancellor's conservatives and their junior coalition partner, Klingbeil's Social Democrats (SPD), differ on how best to bring down fuel prices. While the SPD has called for a windfall tax on oil companies, Merz has rejected the idea.

Klingbeil reiterated on Friday that it was vital for the government to "act quickly."

"I want to see a clear, swift response at the petrol pumps," he said. "We are working on this, and I am confident that we will be able to sort this out very quickly."

No EU-wide windfall tax, EU official says

EU Economy Commissioner Valdis Dombrovskis ruled out an EU-wide proposal for a windfall tax on fuel companies for the time being.

"Member states can go ahead and take those decisions on taxing windfall profits," he said in Dublin, adding that the European Commission is ready to assist in drawing up national measures when needed.

The commission will continue to monitor developments and react appropriately, he added.