The German Government decided to reduce the energy tax on petrol and diesel, but also preparing a mechanism bifon THE fuel prices, with a view to addressing the accuracy of the energy crisis and turbulence in the Middle East. The overall civil and business support package is expected to reach EUR 2.5 billion.
Germany's federal government announced that from 1 October and by the end of the year it would proceed with a reduction in energy tax on petrol and diesel by 14 minutes per litre.
With the addition of VAT, the total reduction to be seen in the final consumer burden is expected to reach about 17 minutes per litre.
According to the government announcement, total relief for citizens and businesses is estimated at 2.5 billion euros. Of this amount, around EUR 1.25 billion will come from the Länder through a fixed amount of VAT.
The German Government invokes the conclusions of the Independent Monopoly Commission and the Federal Anti-Cartel Agency, according to which the previous tax reduction applied in May and June was almost completely passed on to consumers.
«The measure was effective: The fuel rebate met its objective, to effectively mitigate price increases during a period of particularly high fuel prices», says the government announcement.
Murch: «Anyone based on his car reaches its limits»
German Chancellor Friedrich Murch, who had announced government intervention since Tuesday, argued that the government was moving quickly to support the citizens.
«Anyone based on his car every day now reaches their limits. We act quickly and have a clear road map for 2027», stated.
The German chancellor stressed that the support package is a message of resilience in times of crisis.
«We show our resilience in times of crisis and help our citizens. The relief of at least EUR 2.5 billion is not a small amount in times of pressured budgets», report.
At the same time, he noted that the government managed to shape the package in a short time, sending, as he said, «a strong message for the country».
Ceiling fuel prices from 2027
At the second stage, the German government announced that it would launch talks with the oil industry, with a view to introducing a temporary price cap on fuel by 1 January 2027.
The measure is examined in the standards for corresponding interventions implemented in Belgium and Luxembourg.
«Security of supply must be guaranteed and price increases prevented», the government notes.
At the same time, Berlin welcomes the discussions at European Union level on measures to support the oil industry, equivalent to those taken during the 2022 energy crisis.
The German government has also announced that it will continue to monitor closely the progress of prices and the economic impact of the crisis in order to provide targeted support to citizens and businesses most affected.
In this context, it is planned to set up an income-based direct payment mechanism so that aid is directed to those in need.
