April 13, 2026 — German Chancellor Friedrich Merz announced that the government has reduced the fuel tax to help blunt a recent surge in petrol and diesel prices that is squeezing households and businesses. Speaking after coalition talks in Berlin, Merz said the measure aims to ease inflationary pressure at the pump and provide immediate relief for commuters and transport-dependent sectors.
The decision comes amid renewed upward movement in global oil markets and a fresh spike in retail fuel costs. Data from the German Automobile Club showed a sharp midday jump in prices on Monday — the biggest since new pricing rules limiting stations to one price change per day took effect. Diesel reached about €2.30 per liter while Super E10 rose to roughly €2.12 per liter.
Merz framed the tax cut as a targeted, short-term step to stabilize prices while broader reforms and budget measures are developed. He underlined that the government is monitoring market developments and will coordinate any further action with coalition partners. The chancellor also highlighted planned reforms to the statutory health insurance system, the 2027 federal budget and tax measures for lower- and middle-income earners as part of a wider agenda to strengthen public confidence in the state.
The move drew mixed responses. Motorists and business groups welcomed immediate relief at the pump, saying lower taxes would reduce operating costs and ease household budgets. Opposition parties and some economists warned that tax cuts can complicate long-term fiscal planning, potentially reducing revenue needed for public services or climate policies. Observers also noted the political benefit for the government in acting quickly on an issue with direct daily impact on voters.
Separately, policymakers are debating complementary measures to address price volatility, including proposals for a windfall tax on energy firms and targeted support for low-income households. Transport regulators’ recent rule allowing only a single daily price adjustment at petrol stations has also influenced how quickly pump prices react to wholesale changes.
Merz insisted the government’s approach balances short-term relief with fiscal responsibility. He said the administration remains committed to both stabilizing consumer prices and advancing structural reforms that will shape the country’s economic resilience in the months ahead.