Germany’s lower house of parliament has approved a temporary cut in taxes on petrol and diesel, advancing a €2.5 billion relief measure prompted by a renewed surge in fuel prices.
The measure passed the Bundestag on Friday and still requires approval from the Bundesrat, where Germany’s states are represented. The upper house was expected to consider it later the same day. Until that vote is complete, the discount has not finished the legislative process.
The bill would reduce fuel taxes by €0.17 per litre from the beginning of October through the end of December. The government has presented the narrow window as emergency cost relief for households and businesses after the Iran war pushed energy prices higher.
Germany used a similar discount in May and June. That earlier measure cost about €1.6 billion and coincided with a slowing of inflation, but temporary fuel-tax cuts can also raise questions about how much of the reduction reaches drivers rather than remaining in wholesale or retail margins.
The new law’s short duration also makes its fiscal effect easier to contain. Its next legal test is political rather than judicial: approval by the states. If the Bundesrat agrees, the government will have only days to put the revised rate into effect on October 1.
