The German Bundestag approved on Friday the second temporary reduction in taxes on petrol and diesel this year in an attempt to ease the burden on households and businesses due to the sharp rise in fuel prices following the war with Iran. The measure will cost the federal and state budgets a total of around 2.5 billion euros.
From October 1 to December 31, the energy tax on petrol and diesel will be reduced by 14.04 euro cents per litre. Taking into account the resulting VAT reduction, the relief for consumers will be around 17 euro cents per liter.
After approval by the Bundestag, the law must also receive the support of the Bundesrat, in which the German states are represented. The vote in the upper house is expected later on Friday.
This is the second temporary reduction in fuel taxation in Germany in 2026. In the spring, the government introduced a similar measure for May and June, which cost around 1.6 billion euros. At that time, the final discount for gasoline and diesel also reached approximately 17 euro cents per liter.
The new measure comes against the backdrop of ongoing tensions in the Middle East, which led to a sharp increase in the price of energy raw materials. Chancellor Friedrich Merz's government has once again resorted to temporary tax relief after the previous measures expired and energy inflation accelerated.
According to Reuters, during the first discount in May and June, overall inflation in Germany fell. However, since it expired, inflationary pressure from energy prices has increased again.
The government sees the new three-month reduction as a short-term measure to limit financial pressure on citizens and companies, while the conflict in the Middle East continues to keep oil and fuel prices high.