US EditionGermany to Cut Fuel Taxes Amid Iran War Energy Shock
Merz said the 17-cent cut will last two months and be financed by higher tobacco taxes and a planned employer bonus.
- On Monday, Chancellor Friedrich Merz announced a two-month reduction in energy taxes on diesel and petrol by about 17 cents per liter to ease pressure from rising prices.
- Prices at pumps in Germany have soared in recent weeks after fighting in Iran blocked most oil tankers in the Strait of Hormuz, creating supply shortages.
- The decision followed meetings with Markus, representing the Bavarian Christian Social Union, and Social Democrat leaders Lars Klingbeil and Bas; the coalition also planned a 2026 tobacco tax hike and $1,170 tax-free bonuses.
- "This will very quickly improve the situation for motorists and businesses in the country," Merz said, though he warned Germany's economy will face a significant burden over an extended period.
- Merz and Foreign Minister Johann Wadephul are working toward ending the war, calling it the "root cause of problems" facing the country and warning its effects will likely be enduring.
124 Articles
124 Articles
Fuel taxation in Germany is becoming more flexible in the face of the oil surge. A temporary decrease of €0.17 per litre aims to relieve households and businesses, while Opep is reviewing its global demand for fuel in the...
Straubinger Tagblatt [Newsroom] Straubing (ots) - The relief for two months is right for all those who commute to work with the car. It also helps the companies whose employees are on the road in the car. (...) But it has a horse foot. The tank discount also benefits ... Continue reading here...Original content of: Straubinger Tagblatt, transmitted by news aktuell
Berliner Morgenpost
Employers should be allowed to pay a tax-free and duty-free discharge premium of 1000 euros. Does this also apply?
Germany announces tax cuts and employee bonuses for fuel price relief
The German government is stepping in to absorb taxes on fuel for two months as drivers and companies reckon with soaring prices. Policy makers also plan to enable employers to offer tax-free 'relief bonuses'.
While the US threatens to blockade Iranian ports, Germany will reduce taxes on gasoline and diesel.
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