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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Manuela Schwesig speaking at a gas station amid rising fuel prices.
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Fuel discount ends: Schwesig calls for further relief

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The fuel discount for petrol and diesel expires today. Manuela Schwesig demands measures against rising prices.

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.

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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.

South Korea lowered price ceilings on fuel products on Friday. Finance Minister Koo Yun-cheol vowed to freeze electricity and gas rates in the second half of the year.

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Petrol prices in South Africa will increase by 14% and diesel by nearly 24% from Wednesday, 6 May, due to the ongoing Iran war. The Department of Mineral Resources and Petroleum (DMPR) announced the hikes amid rising global Brent crude prices. Temporary fuel levy reductions offer some relief.

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