The price of fuel will be reduced by 17 cents per liter. But not for us... 0 12

The German government has announced a temporary reduction in the energy tax. In order to mitigate the rise in prices, the tax on diesel and gasoline will be reduced by approximately 17 cents per liter for a period of two months, representatives of the ruling coalition of CDU/CSU and SPD reported in Berlin, according to Deutsche Welle. This measure will quickly improve the situation for motorists and companies suffering from the sharp increase in costs in recent weeks, said German Chancellor Friedrich Merz. According to Labor Minister Beate Bas, the total amount of tax relief on fuel for consumers and businesses will amount to about 1.6 billion euros.

"Although we are not waging war in Iran, it is our problem," said CSU chairman Markus Söder. According to him, it is important for the ruling coalition to alleviate the rise in fuel prices, which has become "unbearable" for many. Negotiations within the ruling coalition regarding the situation surrounding skyrocketing fuel prices took place all weekend in Berlin. Söder stated that the consultations lasted a total of 24 hours.

This package of measures is part of a larger coalition plan, which also includes structural reforms. In particular, the German government plans to allow employers to pay employees a tax-free and contribution-free bonus of 1000 euros in 2026.

Additionally, the coalition has agreed on an income tax reform that is set to take effect on January 1, 2027, aimed at supporting low- and middle-income individuals. To compensate for the resulting deficit in tax revenues, the tax on tobacco products will be increased this year.