The Bundestag voted on Friday to approve a fuel price reduction, commonly referred to as the “fuel discount.” In a roll-call vote, 434 members of parliament voted in favor of the legislative changes, while 128 voted against, with no abstentions.
Starting October 1st and running until the end of the year, this measure will lower the energy tax on both diesel and gasoline by approximately 14 cents per liter. When including the value-added tax, the effective reduction is nearly 17 cents per liter.
This decrease is projected to lead to tax losses of up to 2.5 billion euros, which are intended to be split equally between the federal government and the states. The Federal Council (Bundesrat) is also expected to give its approval to the initiative on Friday. This is not the first instance of such a fuel discount; similar measures were implemented in May and June to mitigate the impact of sharply increased energy prices following the Iran conflict.
