Germany German government wants to ease the burden on car drivers by lowering taxes
In view of the high fuel prices, Germany's government is planning to ease the burden on car drivers.
13.04.2026, 09:46
SDA
To this end, the energy tax on diesel and petrol is to be reduced by around 17 cents gross per liter for a limited period of two months, as announced by the coalition parties of the Christian Democrats and Social Democrats in Berlin.
Chancellor Friedrich Merz said that this should improve the situation for motorists and businesses very quickly. The government expects the oil industry to pass on the relief. According to Labor Minister Bärbel Bas, consumers and businesses are to be relieved of a total of around 1.6 billion euros (around 1.48 billion Swiss francs) in fuel prices.
The coalition between the Christian Democratic Union (CDU and CSU) and the Social Democratic SPD also wants to enable employers to pay a tax and duty-free relief bonus of 1,000 euros in 2026. Tobacco tax is to be increased as early as 2026 to counter-finance the reduction in tax revenue.
In this context, the coalition welcomed the European Commission's announcement that it would examine measures for the petroleum industry in 2022, similar to the EU energy crisis contribution. This refers to an excess profits tax. The counter-financing of the tax relief should take place through measures secured by antitrust law or tax law vis-à-vis the oil companies.
The coalition leaders discussed the energy price crisis and upcoming reform projects late into the night at the Villa Borsig in Berlin. Negotiations continued throughout the weekend.
Fuel prices have risen sharply
Since the outbreak of the Iran war, fuel prices have risen sharply. Since the start of the war on February 28 with US-Israeli attacks on Iran, Tehran has blocked the Strait of Hormuz off its coast, which is important for oil transportation. The passage of ships has practically come to a standstill.
At its peak shortly after Easter, a liter of diesel was a good 70 cents more expensive on a daily average across Germany than before the war began, while a liter of Super E10 was a good 41 cents more expensive, according to figures from the Allgemeiner Deutscher Automobil-Club (ADAC). Initial measures taken by the government - the 12 o'clock rule, according to which prices may only be increased once a day, and additional powers for the Federal Cartel Office - initially had no resounding effect.
Recently, prices have fallen again somewhat because the oil price has fallen significantly in the meantime. However, the recent rise in oil prices following the failed negotiations between the USA and Iran is likely to have the opposite effect.
On Saturday, a liter of E10 premium gasoline cost 2.101 euros on average across Germany, and a liter of diesel 2.301 euros, according to figures. These were both slight decreases compared to Friday. Figures for Sunday are expected in the course of the morning. On Sunday afternoon, fuel prices had risen again significantly. Between 11.45 a.m. and 12.15 p.m., diesel rose by 9.7 cents to 2.364 euros per liter, while Super E10 increased by 9.3 cents to 2.164 euros, according to the ADAC.
Dispute within the coalition
Before the weekend, the dispute within the coalition over consumer relief in the face of high fuel prices had intensified. While Vice-Chancellor and Finance Minister Lars Klingbeil (SPD) met with representatives of trade unions and employers, Economics Minister Katherina Reiche (CDU) attacked him sharply. Merz (CDU) called for restraint.
