Germany's parliament has passed a law temporarily cutting taxes on petrol and diesel, aiming to ease the pressure of record fuel prices on households and businesses.
Germany’s parliament, comprising the Bundestag and the Bundesrat, on Friday, 25 September 2026, approved a law temporarily reducing fuel taxes on petrol and diesel. The federal government said the measure takes effect on 1 October and remains in force until the end of 2026.
The Bundestag is the lower house, while the Bundesrat represents the country’s 16 federal states. Both chambers backed the legislation.
The reduction in taxes on petrol and diesel will lower prices by about EUR 0.17 per litre. This is comparable to the temporary cut applied in May and June.
The government estimates the total cost at around EUR 2.5 billion, with the federal states covering half.
Berlin said the renewed escalation of conflicts in the Middle East had pushed up energy and fuel prices, placing a heavy burden on consumers and the German economy.
The government also plans further steps to contain fuel costs. It said it would hold talks with the oil industry on introducing a temporary cap on petrol and diesel prices by 1 January 2027 at the latest.
Rising energy costs have added to inflationary pressure in Europe’s largest economy. Official data show Germany’s inflation rate rose to 2.9% in August from 2.8% in July, while energy prices climbed 10.5% year on year.
Earlier, Germany’s government had announced a fuel tax cut on 18 September 2026 to help motorists and businesses struggling with soaring energy costs.
