Germany’s federal and state governments have agreed to cut taxes on petrol and diesel from October 1 through the end of 2026, aiming to ease the impact of rising fuel prices.

The energy tax will be reduced by 14 cents ($0.14) per litre, with motorists expected to receive total relief of about 17 cents per litre including the resulting VAT reduction.

The measure is projected to provide around €2.5 billion in relief for consumers and businesses.

Germany’s federal states will cover €1.25 billion of the cost through a fixed share of VAT revenue. -OGN/TradeArabia News Service