Germany News: Merz Government Approves Fuel-Price Discount
- On Tuesday, German Chancellor Friedrich Merz pledged that fuel relief measures are coming "very soon," aiming to address citizens' concerns ahead of the Mecklenburg-Western Pomerania state election on Sunday.
- Middle East supply disruptions have driven fuel costs sharply higher, pushing E10 gasoline to a record €2.286 per litre and diesel to €2.404, straining commuter budgets across Germany.
- The Social Democrats proposed an "excess profits tax" on energy firms, while the Alternative for Germany parliamentary group urged reducing energy taxes to the European minimum and abolishing CO2 tax.
- Merz is consulting with the 16 federal states on interventions, though his economy ministry resists price caps citing implementation difficulties, while the Federal Cartel Office monitors potential "price gouging."
- Ahead of the state election on Sunday, the Christian Democrats face significant pressure as party leadership vows to connect better with voters following recent electoral losses to the AfD.
138 Articles
138 Articles
The measure will be supported by the federal states and with the parliamentary groups of the conservative and social-democratic coalition. The subsidy will cost 2,500 million and will enter into force on October 1.
With VAT included, the tax reduction on fuel will reach 17 euro cents per litre. A similar measure had already been installed in May and June.
Chancellor Friedrich Merz had promised to bring solutions to relieve the Germans strangled by pump prices, due to the disruptions of the world market caused by the war in the Middle East.
Just like in the Netherlands, fuel prices in Germany are at record highs. In the Netherlands, the government is not yet intervening, but across the border, it is. The German government and federal states have agreed on a plan to lower prices at the pump. The excise duty on diesel and petrol will be reduced by 17 cents per liter in Germany. A maximum price for fuel is also to be introduced. The German news agency DPA learned this from government …
The German government has agreed with the countries on measures against expensive fuel. Specifically, the tax on petrol and diesel should be reduced by 17 cents. However, details are still unclear.
The cost of the measures, which will include a reduction in fuel tax and the imposition of a price cap, will be borne equally by the federal government and the states, according to ARD.
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