Manuela Schwesig speaking at a gas station amid rising fuel prices.
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 temporary fuel discount has been in place since early May and ends on June 30. From July 1 the previous tax rate applies again, resulting in an increase of 16.7 cents per litre including VAT.

Manuela Schwesig, Minister President of Mecklenburg-Vorpommern, told Funke Mediengruppe newspapers that the federal government should speak with oil companies to prevent price rises. She also calls for a price cap modelled on Luxembourg and a tax reform to relieve lower and middle incomes.

Sven Schulze, Minister President of Saxony-Anhalt, expressed satisfaction with the discount's impact. He hopes for easing tensions in the Middle East and falling oil prices. The discount cost the federal government an estimated 1.6 billion euros.

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Users on X discuss the end of the fuel discount with mixed reactions: some criticize lack of real relief and rising prices, others welcome the expiry as overdue or note economist views; calls for alternatives align with demands in the article.

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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.

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.

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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.

The temporary reduction in the mineral oil tax has been in effect since May 1. Consumer prices for gasoline and diesel have dropped noticeably. Federal Finance Minister Lars Klingbeil expects the oil industry to pass on the relief in full and without delay.

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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.

In response to diesel shortages triggered by Middle East conflicts including recent attacks on Iran, South Africa's Department of Mineral Resources and Petroleum has begun a comprehensive review of the fuel pricing mechanism. Reforms to industry margins are targeted for March 2027, with a temporary R3 per litre fuel levy cut providing short-term relief amid rising global oil prices.

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Economy Minister Roland Lescure detailed conditions for a new government aid targeting nearly 3 million modest high-mileage drivers affected by soaring fuel prices. The measure, averaging 20 euro cents per liter, will be available from May via an online platform on impots.gouv.fr.

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