The Bundesrat has given the final approval for the fuel discount passed by the Bundestag. In a special session held in Berlin on Friday, the Chamber of States opted not to call upon the Mediation Committee.
Under the agreement, energy tax rates for gasoline and diesel will be reduced by 14.04 cents per liter for a duration of two months, effective from May 1st. Including the corresponding value-added tax component, this reduction amounts to a consumer benefit of up to 17 cents gross per liter. The government coalition’s draft law states that this measure is set to save consumers and businesses approximately 1.6 billion Euros on fuel purchases.
The primary goal of the law is to mitigate the immediate price shock currently affecting fuel costs. The government explains that the sharp increases in energy prices, particularly crude oil, which are attributed to the Iran War, could suppress consumer demand. Furthermore, the economic outlook is currently being weighed down by general uncertainty and diminished confidence.
