Germany to cut petrol and diesel taxes by 17 cents a litre
The tax reduction is expected from October as fuel prices become a political issue ahead of state elections in Berlin and Mecklenburg-Western Pomerania.
Germany will cut taxes on petrol and diesel by about €0.17 a litre from October, according to the German government and reporting by France 24 International.
The reduction is expected to comprise about €0.14 in energy tax and €0.03 in sales tax. The measure follows negotiations between the federal and state governments over how the cuts will be financed, while the precise start date and duration have not been specified.
Fuel prices have risen sharply, with benchmark oil prices above $100 a barrel. The increase has become a pressing political issue ahead of Sunday’s elections in Berlin and Mecklenburg-Western Pomerania, where Chancellor Friedrich Merz’s Christian Democratic Union is expected to perform poorly.
The elections will be closely watched after the far-right Alternative for Germany came close to securing an absolute majority in Saxony-Anhalt on 6 September. Mecklenburg-Western Pomerania Premier Manuela Schwesig has called for a fuel price cap, but no such policy is reported to have been adopted.
Germany previously reduced energy tax from May to June, lowering petrol and diesel prices by about €0.17 a litre. It remains unconfirmed how much of the new tax reduction will be reflected in prices at the pump.
