Fuel discount ends as planned end of June

The black-red coalition has decided to let the fuel discount expire as planned on June 30. Faction representatives warned of possible price increases and announced swift countermeasures.

The Bundestag factions of the CDU and SPD agreed not to extend the fuel discount. Sepp Müller of the CDU and Armand Zorn of the SPD told Bild newspaper that the measure had worked but was no longer fiscally justifiable. The government threatened oil companies with swift reactions to sharp price jumps from July 1. Special sessions of the Bundestag would be possible even during the summer recess. The discount of up to 17 cents per liter had been introduced due to rising prices after the Iran war for May and June and cost the state around 1.6 billion euros. Further relief measures such as subsidies or tax cuts are currently under review.

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German gas station at midnight displaying reduced petrol and diesel prices after the government's 17-cent-per-litre tax cut takes effect.
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Fuel tax cut on petrol and diesel takes effect

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The German government's fuel discount took effect at midnight. Taxes on petrol and diesel drop by about 17 cents per litre for two months. It remains unclear how quickly pump prices will reflect the cut.

Despite the fuel tax discount, prices in Germany have risen again after an initial drop. ADAC and the Federal Cartel Office criticize that the 17-cent-per-liter tax cut is not fully passed on to consumers. Oil companies and associations dispute this.

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Sepp Müller, deputy leader of the Union parliamentary group, deems comprehensive subsidies against high fuel prices unrealistic. Eastern German CDU state premiers demand suspension of the CO₂ tax. Care associations warn of impacts on rural patient care.

The French government announced a 70 million euro support plan on Friday evening for road transporters, fishermen, and farmers hit by energy price hikes from the Middle East conflict. Valid for April and renewable monthly, it provides targeted sectoral aid without worsening the public deficit. Sector reactions are mixed.

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Inflation in Germany fell to 2.7 percent in May. The decline is due to the fuel discount and represents an exception in the eurozone.

Oil companies in the Philippines began implementing steep fuel price cuts on Tuesday, June 2, with diesel falling by P9.26 per liter. The Department of Energy set the reductions for the week of June 2 to 8.

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Prime Minister Kim Min-seok said Wednesday the government will decide whether to extend fuel price caps after a careful review, as the temporary measure expires this week. Introduced in mid-March to counter supply disruptions from the Middle East conflict, the system has shown positive effects despite mixed opinions. Kim made the remarks at a meeting on the crisis's economic impact.

 

 

 

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