Germany and Denmark adjust fuel‑related taxes to ease energy costs

German economist Gabriel Felbermayr, a member of the German advisory Council of Economic Experts, has proposed raising gasoline and diesel taxes to fund lower electricity rates for electric‑vehicle charging. He argues that higher fuel taxes would allow electricity tariffs and network fees to be cut, making EV charging significantly cheaper. The proposal follows Germany’s temporary fuel‑tax reduction after the 2026 oil‑price shock and is being debated within the council, though any change would require political approval.

In Denmark, the government has introduced a temporary increase to the commuting tax deduction, effective from 1 July 2026. The allowance rises by 0.89 DKK per kilometre, benefitting more than one million commuters and delivering an average annual tax cut of about 2 300 DKK per household. The measure, costing roughly 2 billion DKK, is funded from unused 2026 budget resources and is intended as a hand‑out to those hardest hit by rising gasoline and diesel prices, including drivers of electric cars and public‑transport users.