Germany fuel tax rebate ends July 1, diesel relief incomplete

The German government’s temporary fuel tax rebate (the “Tankrabatt”) expires at midnight on 30 June, so from 1 July the full pre‑rebate energy taxes will apply again. The rebate cut the energy tax by about 16.7 cents per litre (including VAT), lowering pump prices by roughly the same amount.

Calculations by the Munich‑based Ifo Institute show that the price relief was passed almost entirely to gasoline – Super E5 and Super E10 saw price drops of 16‑17 cents per litre – but only about 73 % of the intended benefit reached diesel buyers, the institute estimating an average pass‑through of 12 cents per litre. The Ifo researchers said the shortfall means part of the €1.6 billion cost of the measure was retained by oil companies.

Industry groups such as the mineral‑oil association en2x claim the rebate was fully passed on, while the Federal Competition Authority’s Monopolkommission also concluded the rebate was only partially transmitted, especially for diesel. The ADAC advises motorists to fill up before the rebate ends – preferably on 29 June and before the daily 12 p.m. price‑increase window – to avoid the expected price jump of up to 17 cents per litre.

The upcoming price rise will add about €8–9 to a 50‑litre tank, affecting millions of drivers and raising operating costs for businesses that rely on road transport.