Germany plans fuel discount and price ceiling as oil taxes are cut

Union and SPD have reached a basic agreement to bring back a 17-cent-per-litre fuel discount beginning in October, lasting until the end of the year. The discount will be funded by a reduction in the federal energy tax, with the federal government covering roughly half of the cost and the Länder expected to pick up the other half, pending their approval. Finance Minister Lars Klingbeil will also continue to lobby the EU for a windfall tax on oil-company profits, a proposal previously rejected.

In parallel, the government plans to introduce a temporary price ceiling for gasoline and diesel, using the Luxembourg and Belgium models as reference, with negotiations slated with the mineral oil sector. Implementation depends on securing a two-thirds majority in the Bundestag, so opposition support is crucial. Consumer groups, the Greens, the Left and Greenpeace have criticised the plan as short-term and insufficiently targeted.