EUROPE

Germany’s fuel tax cut takes effect

Germany’s temporary fuel tax cut came into effect on 1 October, reducing the energy tax on petrol and diesel by 14.04 cents per litre.

Including the resulting VAT effect, the total theoretical tax relief amounts to around 17 cents per litre. The measure is scheduled to remain in force until 31 December 2026.

The Bundestag approved the measure on 25 September, while the Bundesrat did not object. The federal government estimates that the temporary reduction will provide around €2.5 billion in relief for households and businesses.

The full amount is not necessarily reflected immediately in pump prices, as fuel prices are also affected by crude oil prices, exchange rates and market conditions. In the first hours after the measure took effect, prices fell in many parts of Germany, although regional differences remained.

Source: German Federal Government, Bundestag and Reuters.

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