Germany cuts energy tax to offer motorists relief from soaring fuel prices
The move follows record fuel prices and would cost the federal and state governments about €2.5 billion, officials said.
- On Friday, Chancellor Friedrich Merz announced Germany will cut fuel taxes by €0.17 per litre starting October 1, providing relief to consumers facing record-high petrol and diesel prices amid the Iran war.
- Record-High fuel prices stem from global market volatility and supply disruptions in the Strait of Hormuz following the Iran war, with E10 petrol hitting a record €2.286 per litre earlier this week.
- Finance Minister Lars Klingbeil advocates for a windfall tax on energy firms, though the CDU-led economy ministry resists, while the ADAC motoring association urges greater supply chain transparency to address potential market abuse.
- Following significant defeats in recent state elections, the conservative CDU faces intense political pressure, prompting Chancellor Merz to prioritize relief measures to address voter concerns regarding the rising cost of living.
- The €2.5 billion tax relief package awaits parliamentary approval later this week, with the government aiming to recoup costs through a proposed levy on excess profits generated by energy companies.
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agrarheute.com
wochenblatt-dlv.deAs early as 1 October, diesel prices for farmers could fall, and the government is planning these measures.
The German government will temporarily reduce the tax on gasoline and diesel. From October 1, fuel prices at stations are expected to fall by around 17 euro cents per litre. The relief, which will cost the budget 2.5 billion euros, is a response to a sharp rise in oil prices and deteriorating social sentiment.
In view of the high fuel prices, the Federal Government and the Länder have agreed on a new fuel discount. As the Federal Government announced in the evening, the fuel discount should amount to 17 cents per litre from October to the end of the year. The federal government and the Länder therefore share the costs for the relief of a total of 2.5 billion euros.
While Germany is going to lower petrol prices, the Netherlands is choosing not to. As a result, even more compatriots will seek their fortune across the border, concerned Dutch petrol station owners expect. "Our own government is once again not taking action."
WDR Newsroom [Newsroom]Köln (ots) - In the WDR, Frank Huster, Chief Executive Officer of the Bundesverband Spedition und Logistik, described the decision of the federal and state governments to reintroduce a tank discount and a new fuel price cover as a compromise. ... Continue reading here...Original content of: WDR Newsroom, news transmitted by currently
The Social Democrats are calling for a special tax to be imposed on oil companies that are reaping huge extra profits from the war in the Middle East.
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