Lower house backs €2.5 billion temporary tax relief, with petrol and diesel taxes set to fall by €0.17 per litre from October through December
Germany’s lower house of parliament on Friday approved a second temporary fuel tax cut this year, as the government seeks to shield households and businesses from soaring petrol and diesel prices.
The measure, which is expected to clear the upper house later on Friday, will cost Germany’s federal and state governments around €2.5 billion ($2.85 billion).
Under the plan, taxes on gasoline and diesel will be reduced by €0.17 ($0.20) per litre from the beginning of October until the end of December. The government introduced the measure to provide relief as fuel prices have surged amid the Iran war.
The latest tax cut follows an earlier temporary reduction approved by Germany in April. That measure lowered fuel taxes during May and June and cost around €1.6 billion.
German authorities said inflation eased during the two months when the earlier fuel tax discount was in effect, highlighting the potential impact of lower fuel costs on broader price pressures.
The latest intervention comes as elevated energy costs continue to weigh on consumers and businesses, with the government seeking to limit the impact of higher fuel prices on household budgets and operating costs.
