Germany is reducing taxes on petrol and diesel by 17 cents per litre, starting in October, to support the population and companies

Germany will cut taxes on gasoline and diesel by 17 cents per liter starting in October, in a temporary measure intended to limit the impact of high prices on households and companies. The reduction will remain in effect until the end of December.

The law was approved by the lower house of the German Parliament, while the upper house raised no objections. The measure can therefore come into force amid uncertainty in energy markets caused by the conflict in the Middle East.

The total cost for the federal government and the states is estimated at 2.5 billion euros. The government led by Chancellor Friedrich Merz is seeking, through this intervention, to ease the pressure that rising fuel prices are placing on household budgets and companies.

The decision revives support previously provided to consumers and businesses. Germany also cut fuel taxes in May and June, in a program that cost 1.6 billion euros and temporarily helped ease inflationary pressures.