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Today's Paper | September 16, 2024

Published 04 Sep, 2005 12:00am

Fischer tells oil cos to cut prices

BERLIN, Sept 3: German Foreign Minister Joschka Fischer called on international oil companies on Friday to cut their petrol prices, even though his Greens party has long advocated higher energy prices to promote conservation.

Speaking at a campaign rally in Berlin two weeks before a general election, Fischer said he suspected oil companies were using the recent global market turmoil to exploit consumers.

I see the higher petrol prices and the first question I ask is: What are the reasons for that from the oil concerns? Fischer said, jumping into the heated issue of surging energy prices that is threatening to hijack the Sept. 18 election.

Are the price increases justified or is it simply a case of making profits, the vice chancellor told some 2,000 supporters.

I believe the oil companies should reduce their prices,” said Fischer — whose party once called for petrol prices to be raised gradually to nearly twice the current level of about 1.40 euros per litre to discourage Germans from driving cars.

Fischer’s Greens party and its senior coalition partner, Chancellor Gerhard Schroeder’s Social Democrats, are fighting an uphill battle to win a third term. Voter surveys show the Greens at about the same eight per cent they won in 1998 and 2002.

But Schroeder’s SPD, hovering around 30 per cent, is some 7-9 percentage points below its 2002 score and at least 10 points below the opposition Christian Democrats.

The SPD-Greens coalition has raised petrol taxes steadily over the last seven years with the aim of discouraging the use of cars, promoting public transport and enabling cuts in workers’ contributions to the pension system.

Petrol prices in Germany have jumped nearly 10 per cent in the last week and nearly 30 per cent this year.

CDU leader Angela Merkel, tuning into the public outrage over surging fuel prices, has attacked the government for raising fuel taxes and accused it of mismanaging its strategic oil reserves.

Be careful because a lot of sand is being strewn in your eyes, Fischer told the rally. Although Merkel criticises the government’s petrol taxes she has said she will keep them if she wins power.

In his 45-minute speech, Fischer defended the government’s energy policies and multi-billion euro subsidies for renewable energy infrastructure.

He said the efforts made Germany’s economy competitive and jobs had been created in the renewable energy sector, making Germany a leading exporter.

Despite urging oil firms to cut their prices now, Fischer later returned to the more traditional Greens position. “Over the long term, we’re going to have to cope with rising energy prices, he said.—Reuters

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