Published April 24, 2026 — last updated April 24, 2026
Germany moved to ease rising pump prices after lawmakers in both the Bundestag and Bundesrat approved a temporary cut in the fuel tax worth €0.17 per liter. The measure, tied by officials to price pressures stemming from the US‑Israeli war in Iran, is expected to reduce fuel bills and to cost roughly €1.6 billion in foregone tax revenue.
The legislation should lower the price of a liter of gasoline or diesel by €0.17 when suppliers pass the cut on to drivers. Fuel prices spiked in April, with E10 gasoline reaching about €2.18 per liter and diesel about €2.44 at their peaks. The ADAC automobile club reported average prices near €2.07 for E10 and €2.15 for diesel. In the Bundestag vote, 453 deputies supported the bill and 134 opposed it.
Economists and campaigners warned the rebate is blunt and may not help the poorest households most effectively. Critics also argued big oil companies might not pass the full saving to consumers, blunting the relief; Chancellor Friedrich Merz and other government figures urged fuel suppliers to transfer the tax reduction into lower pump prices.
Political fallout and other developments
– FDP controversy: Wolfgang Kubicki, a Free Democrats leadership contender, was criticised after insulting Chancellor Merz on a podcast and saying he would be willing to work with the far‑right Alternative for Germany in parliament. CDU members and FDP colleagues such as Marie‑Agnes Strack‑Zimmermann rebuked him, warning against shifting the party rightward and abandoning the long‑standing “firewall” against radical parties.
– Environmental protests: Fridays for Future planned demonstrations in around 60 cities and municipalities, accusing Energy Minister Katherina Reiche of shaping policy to favour the fossil fuel industry and demanding stronger climate action.
– Ryanair cuts Berlin service: Ryanair said it will halve its service at Berlin Brandenburg (BER), moving seven jets away from the airport from October 24. The carrier expects to serve about 2.2 million passengers to and from Berlin in 2027, down from roughly 4.4 million, citing high taxes and airport fees — claims BER management has rejected.
Coverage also flagged wider economic pressures: concerns about pension strains for seniors and possible impacts on worker bonuses at firms such as Porsche amid broader cost and demand worries.