Dr. Karina Doorley:

That is one of the options for the European Commission. It can suggest that member states should consider whether the situation merits such action. Reducing tax on fuel prices certainly is an option that might be worth looking at. Given that we expect this to be a temporary increase then we should think in terms of temporary measures. During the pandemic older people were asked to cocoon so the fuel allowance was increased for an extra month and a measure like that could go a long way. A fuel allowance is only targeted at those who receive social welfare. Other measures might be needed to target middle income earners, around the middle of income distribution, who are still constrained from switching subject to these higher fuel prices.