April 13, 2026 — Chancellor Friedrich Merz said the federal government has reduced the fuel tax to blunt a recent surge in petrol and diesel prices that has been squeezing households and businesses. Announcing the step after coalition talks in Berlin, Merz described the measure as an immediate, targeted relief aimed at easing inflationary pressure at the pump and helping commuters and transport-dependent sectors.
The decision follows renewed upward movement in global oil markets and a sharp spike in retail fuel costs. Data from the German Automobile Club recorded a pronounced midday jump on Monday — the largest since new rules limiting petrol stations to a single daily price change came into force. Diesel reached about €2.30 per litre and Super E10 rose to roughly €2.12 per litre.
Merz presented the tax cut as a short-term stabilizer while broader reforms and budgetary measures are prepared. He said the government will monitor market developments closely and coordinate further steps with coalition partners. As part of the wider policy agenda he cited planned reforms to the statutory health insurance system, the 2027 federal budget and tax measures aimed at lower- and middle-income earners to shore up public confidence.
Reaction to the move was mixed. Motorists and business groups welcomed the immediate relief, saying lower fuel taxes will reduce operating costs and ease household budgets. Opposition parties and some economists cautioned that tax reductions complicate long-term fiscal planning, potentially cutting revenue needed for public services or climate policies. Analysts also pointed to the political advantage for the government of acting quickly on an issue that affects voters’ daily expenses.
Separately, policymakers are debating complementary steps to manage price volatility, including proposals for a windfall tax on energy companies and targeted support for low-income households. Regulators’ recent limit on daily price adjustments at petrol stations has also affected how rapidly pump prices respond to wholesale changes.
Merz insisted the approach seeks to balance short-term relief with fiscal responsibility. He said the administration remains committed both to stabilizing consumer prices and to pushing forward structural reforms intended to strengthen the country’s economic resilience in the months ahead.