Berlin, May 5, 2026
The German federal government has introduced a temporary tax cut on fuels to ease gasoline and diesel prices, but the relief is only partially reaching consumers.
Tax Cut and Its Effects
The measure reduces the energy tax by approximately 17 cents per liter and is set to remain in effect until the end of June. According to estimates, this will cost the state around €1.6 billion in lost revenue this year. Since the fuel discount was introduced, prices for Super E5 and diesel have fallen but remain significantly higher than pre-crisis levels.
The Ifo Institute compared price trends in Germany with those in France to evaluate the measure's effectiveness. The analysis reveals that the tax cut was not fully passed on to consumers. The fuel market remains tense, especially since the outbreak of the Iran war, which has led to significant price increases.