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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.
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The German government is reducing fuel taxes to lower the prices of gasoline and diesel.

·Tehran, Iran (Islamic Republic of)
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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...

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Aktuálně.cz broke the news on Friday, September 18, 2026.
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