Stories
Germany Approves Second Fuel Tax Cut to Combat Soaring Prices
F
Firstpost•25-09-2026, 18:06
Germany Approves Second Fuel Tax Cut to Combat Soaring Prices
- •Germany's parliament approved a second temporary fuel tax cut this year to shield households and businesses from rising petrol and diesel prices.
- •The measure, costing around €2.5 billion, will reduce taxes on gasoline and diesel by €0.17 per litre from October to December.
- •This follows an earlier tax reduction in April, which lowered fuel taxes during May and June at a cost of €1.6 billion.
- •Authorities noted inflation eased during the previous tax discount period, indicating the potential impact of lower fuel costs on broader price pressures.
- •The intervention aims to limit the impact of elevated energy costs on household budgets and business operating costs amid the Iran war.
Key Questions Answered
Under Germany's second temporary fuel tax cut, taxes on gasoline and diesel will be reduced by €0.17 ($0.20) per litre from the beginning of October until the end of December.
The German government introduced the measure to shield households and businesses from soaring petrol and diesel prices that have surged amid the Iran war.
Germany's earlier temporary reduction was approved in April and lowered fuel taxes during the months of May and June.
