German Bundestag approves fuel tax cut — petrol and diesel to fall by €0.17 per litre from 1 October 2026

The German Bundestag has approved a temporary cut in fuel taxes that will reduce pump prices for petrol and diesel by a total of €0.17 per litre from 1 October 2026.

Under the bill agreed by the governing black-red coalition, the energy tax on petrol and diesel will be lowered by €0.14 per litre for the period from October through the end of December; with value added tax applied, consumers should see a net fall of €0.17 per litre at the pumps.

The measure still requires approval by the Bundesrat; lawmakers planned to seek that confirmation on 25 September 2026 so the change can take effect on 1 October 2026.

Coalition defends quick relief, opposition calls it pointless

Stefan Korbach of the ruling CDU said the higher fuel prices are hitting households and adding burdens for companies, calling the tax cut "the best quickly available tool" because it can be implemented without individual applications.

Armand Zorn, deputy leader of the SPD parliamentary group, highlighted that many people rely on cars to reach their workplaces. The coalition also agreed on a price-cap mechanism intended to limit the room for further price increases by oil companies.

Critics from the opposition voiced strong objections. Katharina Dröge, head of the Greens parliamentary group, described the fuel rebate as "a senseless solution," arguing that the reductions were not fully passed on to consumers during a similar measure in May and June and that the cost is roughly equal to the total annual sum of cuts to family benefits in the federal budget.

The state expects a tax revenue shortfall of €2.5 billion because of the discount; that loss will be borne equally by the federal government and the Länder. Earlier in the spring a separate two-month fuel discount had been introduced to ease sharp pump-price rises linked to the conflict with Iran.

Photo: press material from the event