Germany Ends Fuel Tax Cut, Considers New Price‑Control Measures

Germany’s government decided not to extend the fuel‑tax discount that was introduced on 1 May. The 17‑cent‑per‑litre reduction will expire on 30 June as originally scheduled, a move announced by parliamentary group deputies Sep Møller (CDU) and Armand Chorn (SPD). They said, “After much discussion, we decided to let the fuel tax discount expire as scheduled on June 30,” and added, “We do not have the luxury to take on debt for this purpose.”

The two‑month measure is estimated to have cost the state roughly €1.6 billion. Officials warned oil companies not to raise prices after the cut ends and said a special Bundestag session could be convened if the situation worsens after 1 July. The government is now examining alternative consumer‑support options, including targeted subsidies for low‑income drivers, a higher mobility allowance, reduced energy taxes, a cut to electricity tax for all, price caps on fuel and on oil‑company profits, and tougher antitrust enforcement. These steps are being discussed against the backdrop of higher fuel prices linked to the current Middle‑East crisis.