Following approval by the Bundesrat, the federal council has cleared the way for what is known as the fuel discount. The necessary changes to the laws received the assent of the states’ chamber this Friday, allowing the project to come into effect on October 1st.
Under this measure, the energy tax on diesel and petrol is set to drop by 14 cents per liter by the end of the year. After factoring in the value-added tax, this results in an effective reduction of almost 17 cents per liter.
The government anticipates state revenue losses of up to 2.5 billion euros, which are planned to be split equally between the federal government and the individual states. This type of fuel discount was previously implemented in May and June to cushion the impact of sharply rising energy prices due to theIran conflict.
