Fuels: German Chancellor announces discounts of 17 cents per liter

“ Ohigh oil prices are a burden on our country. In conjunction with the federal states, we will introduce a tax reduction of approximately 17 cents per litre of gasoline and diesel”, said Friedrich Merz on social network X.

The measure, which arises after several days of the Executive consultations with the federal states, which will help finance the reduction, and with the parliamentary groups of the government coalition of conservatives and social democrats, will enter into force on 1 October and will be valid by the end of the year.

“It’s good news. The coalition acted ", stressed the Chancellor, who is plunged into a serious political crisis due to his poor popularity and the height of the far right, which two weeks ago won the regional elections of Saxony-Anhalt (east).

In addition, this Sunday there are two other elections in which the Christian Democratic Union (CDU) of Merz faces the possibility of losing the Berlin City Hall and falling below the two digits in Meclemburg-Western Pomerania.

According to a Chancellor's statement, this fuel subsidy will cost the State EUR 2,500 million, of which the federal states will contribute half, and will be applied by reducing the energy tax by 14 cents, to which three cents of the VAT reduction is added due to the reduction in the total price.

In addition, talks with the fuel sector will begin with the aim of agreeing to the introduction, at the beginning of next year, of a ceiling at the prices of petrol and diesel, according to the Luxembourg or Belgium model, where the Government defines the maximum daily price.

“The security of supply must be guaranteed. Excessive abusive prices must be prevented,” said the German Executive, who also welcomed the EU-wide talks to study possible measures against the oil sector.

The Government is also ready to support the most affected citizens or businesses, if necessary, concluded the communiqué, and will set up a mechanism for the disbursement of direct income aid.

The German State had already subsidized fuel prices this year, between May and June, to achieve a similar reduction of value, with the aim of mitigating the economic effects of the war initiated by the US and Israel against Iran, which triggered the cost of oil by affecting the transit of hydrocarbons in the Strait of Ormuz.

The Automobile Club of Germany (ADAC, by its acronyms in German) today reported that the price of diesel hit its historic peak for the second consecutive day, on Thursday it cost on average 2,471 euros per litre.

On the other hand, the price of E10 gasoline dropped slightly on Thursday to 2,308 euros per litre, of the 2,314 euros that cost on average the day before.