Germany cuts energy tax to offer motorists relief from soaring fuel prices
The measure would cut taxes by 17 cents a litre and could be followed by a nationwide fuel price cap, officials said.
- On Friday, Chancellor Friedrich Merz's government announced a fuel tax cut of €0.17 per litre, a 2.5 billion euro measure taking effect October 1 through year-end to address record-high gasoline prices.
- The six-month war involving the United States, Israel, and Iran has pushed benchmark oil prices over $100 a barrel, with Tehran restricting Gulf exports and Iran-backed Houthis targeting alternative routes; E10 gasoline hit a record €2.286 per litre this week as Saudi Arabia's Aramco halted European shipments.
- Merz faces intense political pressure ahead of Sunday elections in Berlin and Mecklenburg-Western Pomerania after the far-right AfD trounced his CDU in Saxony-Anhalt two weeks ago, stating "Anyone who relies on their car every day is reaching their breaking point."
- Greenpeace criticized the tax cut, claiming "a large chunk of it ends up as excess profit in the pockets of the oil companies," while the government plans to introduce a fuel price cap modeled on Luxembourg or Belgium by January 1, 2027.
- Mecklenburg-Western Pomerania's state premier Manuela Schwesig has accused Merz of inaction and called for a Luxembourg-style price cap; earlier this year, temporary tax cuts lowered prices by around 17 cents per litre, sparking calls for extension.
24 Articles
24 Articles
The German government is reducing fuel taxes to lower the prices of gasoline and diesel.
Germany cuts energy tax to lower soaring petrol prices
Germany will cut taxes on gasoline and diesel by about 17 cents a litre from October, the government said Friday. The move aims to gain temporary relief for motorists as fuel prices surge above €2 a litre and contribute to growing pressure on Chancellor Friedrich Merz.
The German government has announced a reduction in taxes on petrol and diesel, effective on 1 October. This measure, costing 2.5 billion euros, aims to relieve consumers and businesses from the risk of...
German government agrees fuel tax cut
Germany is poised to cut taxes on fuel for vehicles under an agreement within the country's coalition government, sources said Friday, as Europe's biggest economy grapples with surging prices because of the Middle East war.
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