Germany cuts fuel taxes to ease energy cost pressures

Germany’s ruling coalition has approved temporary fuel tax cuts to shield households and businesses from rising energy costs driven by the war in the Middle East.

German Chancellor Friedrich Merz confirmed the decision, noting that it includes reducing the energy tax on diesel and gasoline for a period of two month, Caliber.Az reports via German news.

According to a joint coalition document, the relief package is valued at around €1.6 billion. Fuel prices are expected to fall by approximately 17 cents per litre, with authorities urging oil companies to pass the savings directly on to consumers.

The decision follows consultations in Berlin among leaders of the governing coalition, including representatives from the Christian Democratic Union, the Social Democratic Party of Germany, and the Christian Social Union.

The talks focused on mitigating the economic impact of surging energy prices, as Europe grapples with renewed volatility in global fuel markets linked to geopolitical tensions in the Middle East.

By Sabina Mammadli