Urgent.News

What's breaking now, across thousands of outlets.

Finance & Markets

17 Cent weniger pro Liter: Bund und Länder beschließen Tankrabatt

Benzin und Diesel sollen bis Ende 2026 günstiger werden. Ein Beschlusspapier sieht eine Entlastung von rund 2,5 Milliarden Euro vor.

Original German Read in English

The coalition government has agreed on a package of measures to relieve citizens and businesses amid high fuel prices. This includes a new fuel rebate and a crisis-based fuel price cap. The decision paper indicates a relief for citizens and businesses amounting to approximately 2.5 billion euros. Specifically, the Energy Tax on petrol and diesel is set to be reduced by 14 cents per liter by the end of 2026.

Combined with VAT, this results in a relief of 17 cents per liter. The statement says, "The Federal Government and the Länder will jointly relieve citizens and businesses due to the high fuel prices. This is a political obligation even in a difficult budget situation and a joint effort." The total sum of the relief is estimated at around 2.5 billion euros.

The Länder are to contribute 1.25 billion euros. A price cap is also planned to be introduced after the end of the fuel rebate. The federal government intends to regularly discuss this with the petroleum industry. The mechanism is intended to be temporary, used in response to the current crisis. Under a fuel price cap, a maximum price for petrol and diesel is set, which can be based on developments in oil prices, costs for transport and distribution, and a dealer margin.

The SPD has long called for such a mechanism, taking Luxemburg and Belgium as models. Federal Economics Minister Katherina Reiche reacted to the decision. "Security of supply is a great good, the prerequisite for the price cap must be that it is guaranteed," she told the Handelsblatt. "The fact that there are eleven refineries in Germany makes us independent of external factors, this must not be put at risk," Reiche explained.

Written by urgent.news from Politico EU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at politico.eu →

More in Finance & Markets

More from Friday 18 September →