A second cut in fuel excise duty this year came into effect in Germany at midnight. The measure, which will be in place for three months, is expected to cut the price of petrol and diesel by 16.7 cents per litre, DPA reported.
The government took the move in response to high fuel prices.
September was a record-breaking month for fuelling in Germany. But fuel costs are also contributing to rising inflation.
The extent to which the measure will have a tangible effect on drivers is expected to become clear in the coming hours and days, as gas stations are not directly obliged to reduce prices.
The measure practically only applies to fuel that leaves warehouses and refineries. However, prices at most gas stations are expected to fall rapidly, as happened with previous excise duty cuts in May and June and in 2022.
Fuel prices fell on Tuesday and yesterday.
The industry organization en2x announced that the excise duty cut will start being calculated into the final price as of midnight. The German Automobile Association (ADAK), however, is more cautious.
"Prices will fall gradually", said fuel market expert Christian Laberer before the measure came into effect. "We have called for a complete price reduction, sooner rather than later, but there are concerns that the excise duty reduction will not be felt equally by all drivers."
The measure has been criticized for being poorly targeted, for reducing the incentive to save fuel and for not benefiting all consumers.
Its supporters argue that there is currently no better way to provide relief for drivers.