Published April 24, 2026 — last updated April 24, 2026
People in Germany could see gas prices fall next week after lawmakers approved a bill to lower the fuel tax by €0.17 per liter.
Lawmakers in both houses — the Bundestag and the Bundesrat — passed temporary legislation aimed at easing consumer strain from skyrocketing fuel costs linked to the US‑Israeli war in Iran. The measure is intended to reduce the price of one liter of gasoline or diesel by €0.17 and is forecast to mean about €1.6 billion in tax savings.
Prices have surged in April: E10 gasoline rose to around €2.18 per liter and diesel to roughly €2.44 per liter at their peaks. The ADAC automobile club reported average prices of about €2.07 for E10 and €2.15 for diesel. On the final vote in the Bundestag, 453 parliamentarians supported the bill and 134 opposed it.
Economists and critics say the rebate is blunt and unlikely to target those most in need. Observers also warned that large oil companies may not pass savings on to consumers, undermining the measure’s intended relief. Chancellor Friedrich Merz and other government figures have urged fuel suppliers to pass on the tax cut.
Political fallout and other developments
– FDP controversy: Wolfgang Kubicki, the Free Democrats’ leadership contender, drew criticism after crudely insulting Chancellor Merz on a news podcast and saying he would be willing to cooperate with the far‑right Alternative for Germany (AfD) in parliament. His remarks prompted rebukes from the CDU and from FDP colleagues such as Marie‑Agnes Strack‑Zimmermann, who warned against shifting the party to the right and abandoning the long‑standing political “firewall” against radical parties.
– Environmental protests: Fridays for Future planned protests in some 60 cities and municipalities, accusing Energy Minister Katherina Reiche of shaping policy to benefit the fossil fuel industry and calling for stronger climate action.
– Ryanair cuts Berlin service: Irish low‑cost carrier Ryanair announced it will halve its Berlin BER service and relocate its seven jets based there to other airports, effective October 24. The airline expects to serve about 2.2 million passengers to/from Berlin in 2027, down from roughly 4.4 million now, citing high taxes and airport fees — claims rejected by BER management.
Other issues noted in coverage include concerns about pension pressures for seniors and potential impacts on worker bonuses at companies such as Porsche amid broader economic strains.