Chancellor Friedrich Merz and his coalition government introduced the cuts to reduce financial pressure on consumers facing volatile fuel markets. The administration is now initiating discussions to implement a Belgium-style price cap on petrol and diesel for January to maintain pricing stability in the new year.
Tuesday, October 20, 2026
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Germany Cuts Fuel Tax by 17 Cents a Liter Through December
Commodities24 days ago
A €2.5 billion ($2.8 billion) relief package will lower the cost of gasoline and diesel starting Oct. 1 to offset surging energy prices for drivers. Lawmakers set the tax reduction to run through Dec. 31, cutting energy levies by 14 cents per liter, which increases to roughly 17 cents per liter after including value-added tax. The cost of the temporary measure will be split between the German federal government and its states.
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