German Parliament Approves Fuel Tax Cut Starting October 1

The German Bundestag and Bundesrat approved a temporary fuel tax cut on Friday, lowering energy taxes on petrol and diesel by 14.04 cents per litre from 1 October. Including value-added tax, the total relief reaches about 16.7 cents per litre, commonly rounded to 17 cents. The measure mirrors a similar discount applied in May and June and is set to expire on 31 December.

The federal government estimates revenue losses of up to 2.5 billion euros, split equally between the federation and the states. The coalition used an expedited legislative procedure, attaching the amendment to an advanced bill to bypass first readings and committee debates. Bundestag approval came around midday, followed by Bundesrat consent.

“Whoever has to refuel after 12 noon incurs considerable additional costs that cannot be justified in any way.”

Petrol stations are not legally required to pass on the full reduction, but past experience suggests prices often drop at midnight on 1 October. However, discounted fuel only applies to supplies leaving refineries after that time, so nationwide availability may take several days.

Meanwhile, the ADAC automobile club called for abolishing the "12-noon rule" introduced in April, which limits price increases to once daily at noon. The club argues the rule has widened intraday price spreads without lowering overall costs, penalising drivers who refuel after midday.