The German government has reached an agreement on a package of measures designed to curb the increase in fuel prices. According to reports from various media outlets, including ARD and ZDF, this package totals approximately 2.5 billion euros and includes the introduction of a new “fuel discount” (Tankrabatt).
Specifically, the federal government plans to reduce the energy tax on fuels by 14 cents per liter for both gasoline and diesel until the end of 2026. When combined with the value-added tax, this translates into a total saving of 17 cents per liter for consumers.
Furthermore, a crisis-related fuel price ceiling, modeled after systems used in Luxembourg and Belgium, is planned to be implemented no later than January 1, 2027.
However, implementation is not yet finalized. ARD noted that the federal states (Länder) must still provide their consent. Meanwhile, reports indicated that these states are expected to contribute to the costs associated with these new measures.
