German Bundestag approves temporary fuel tax cut to ease soaring gasoline prices

In a bid to cushion motorists from record fuel costs, the Bundestag approved a temporary reduction of the fuel tax by about €0.17 per litre for gasoline and diesel, effective from 1 October until the start of the next year. The cut is projected to cost the federal and state governments €2.5 billion in lost revenue and represents the second tax relief move this year. To expedite the vote, the amendment was bundled with unrelated legislation.

According to the ADAC motoring association, average gasoline prices recently hit €2.308 per litre and diesel €2.471 per litre, the highest levels on record. The tax reduction could lower the price at the pump by up to 16.7 cents per litre, though retailers are not obliged to pass the full saving on to consumers. The government hopes the measure will ease household budgets amid high global oil prices linked to the ongoing Iran war.