Germany will cut energy taxes on gasoline and diesel by EUR 0.14 per litre from 1 October to 31 December 2026, providing temporary relief as fuel prices surge.
Germany’s government announced a fuel tax cut on 18 September 2026 to help motorists and businesses struggling with soaring energy costs.
The energy tax on gasoline and diesel will drop by EUR 0.14 per litre, reducing total costs by approximately EUR 0.17 per litre when VAT is factored in.
The measure will cost the government 2.5 billion euros and run from 1 October through 31 December 2026.
Chancellor Friedrich Merz said the cut responds to citizens “reaching their breaking point” as petrol prices hit record highs. The nationwide average price for E10 gasoline reached EUR 2.286 per litre this week. The federal government and state governments will split funding for the relief package.
Officials plan to negotiate a fuel price cap with the oil industry by 1 January 2027 at the latest, modelled after systems used in Luxembourg and Belgium.
Opposition parties and environmental groups attacked the plan. Greenpeace argued the tax cut does nothing to reduce oil dependency and allows fuel companies to capture excess profits rather than passing savings to consumers. The government previously offered similar relief in May and June 2026, cutting prices by around EUR 0.17 cents per litre.
