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 fuel discount runs until end of June to relieve drivers from price hikes due to the Iran war. The black-red coalition cut energy taxes by 14.04 cents per litre, equating to about 17 cents without VAT. The measure costs the state up to 1.6 billion euros.
Finance Minister Lars Klingbeil (SPD) expects full pass-through to consumers. "We have antitrust law for that, political pressure, and a critical public," he said. The Fuels and Energy Association announced it would pass on the full cut.
Pump stations are not obligated to implement the reduction, and delays are possible due to stocks bought at old tax rates. Consumer centres urge the Bundeskartellamt to monitor closely. "The fuel discount must not become a corporate discount again," said Ramona Pop, head of the federal association, referring to 2022.
Just before activation, prices surged: diesel by 17.7 cents, E10 by 15.4 cents at the midday jump, per ADAC. This may temper the discount's effect on Friday amid high oil prices.
