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2026-09-19 21:12:11
The German federal and state governments have reached an agreement on a €2.5 billion (approximately $2.9 billion) fuel relief package aimed at alleviating fuel cost pressures on car owners and businesses. The package includes a three-month fuel tax reduction starting in October and a temporary price cap on refined oil products. Under the plan, the energy tax on gasoline and diesel will be reduced by 14 euro cents per liter, and combined with the corresponding VAT reduction, the overall tax reduction will be approximately 17 euro cents per liter. This €2.5 billion expenditure will be funded through two channels: firstly, the finance department will utilize unused budget surpluses from this year; the difference will be covered through a "combined financing arrangement." Furthermore, the total cost of the relief package will be borne half by the German states.
