DID Press: Germany will temporarily cut taxes on petrol and diesel from October 1, 2026, as the government seeks to ease the impact of sharply higher fuel prices on households and businesses.
The federal government and Germany’s states agreed to reduce the energy tax on petrol and diesel by 14 cents per litre through the end of 2026. Including the resulting reduction in value-added tax, the total tax relief is expected to amount to about 17 cents per litre.
The package is expected to provide about €2.5 billion in relief, with the federal and state governments sharing the financing. The measure is scheduled to take effect on October 1 and remain in place for three months.
The decision comes amid elevated oil and fuel prices linked to disruptions in global energy supplies. The German government has said the Middle East conflict and disruption to shipping through the Strait of Hormuz have contributed to uncertainty in energy markets and higher fuel prices.
In addition to the temporary tax reduction, Berlin plans to hold talks with the oil industry with the aim of introducing a temporary fuel-price cap by January 1, 2027, at the latest. The proposed mechanism would draw on models used in countries including Luxembourg and Belgium, although details have yet to be finalized.
The German government has also said it will continue monitoring fuel-price developments and consider further targeted measures for households and businesses particularly affected by the energy crisis.