Germany ends temporary fuel tax rebate on June 30

The German government introduced a temporary fuel tax rebate on May 1, cutting the fuel tax by roughly 17 cents per litre and allocating about €1.6 billion to the scheme. Early data from the Ifo Institute shows that the rebate has been largely passed on to motorists – average prices fell by around 13 cents for gasoline and 27 cents for diesel – but a significant share of the tax relief remains with oil companies. The Ifo analysis also notes that the benefit is skewed toward high‑usage drivers and heavy‑consumption vehicles, offering limited relief for low‑income commuters.

Following coalition talks, the Union and SPD parties agreed not to extend the rebate beyond its planned expiry on June 30, citing fiscal constraints and the inability to finance further debt. Officials said the measure will be allowed to lapse, with the option to react quickly should fuel prices surge after July. They also indicated plans to tighten competition rules in the fuel market and explore more targeted relief measures such as income‑tax reforms.