Germany’s coalition government has approved a plan to ease pressure on motorists as gasoline and diesel prices reach record levels, with a fuel tax reduction set to take effect in October 2026. Under the agreement, taxes on gasoline and diesel will be cut by 17 cents (€0.17) per liter from October. The government also plans to introduce a fuel price cap in January 2027, according to German government sources cited by Deutsche Presse-Agentur (DPA). The measures come as fuel prices have risen sharply amid disruptions linked to the war in Iran and restrictions affecting crude oil exports throug

Germany’s coalition government has approved a plan to ease pressure on motorists as gasoline and diesel prices reach record levels, with a fuel tax reduction set to take effect in October 2026. Under the agreement, taxes on gasoline and diesel will be cut by 17 cents (€0.17) per liter from October. The government also plans to introduce a fuel price cap in January 2027, according to German government sources cited by Deutsche Presse-Agentur (DPA). The measures come as fuel prices have risen sharply amid disruptions linked to the war in Iran and restrictions affecting crude oil exports through key shipping routes. Germany’s average diesel price reached about €2.47 per liter, while E10 gasoline rose above €2.30 per liter, according to Germany’s ADAC motoring association. The fuel crisis has also become a major political issue for Chancellor Friedrich Merz’s coalition government, which has faced pressure to respond quickly to rising costs. The government’s announcement comes just days before state elections in Berlin and Mecklenburg-Western Pomerania. The new measures are intended to provide immediate relief at the pump while giving the government more time to develop longer-term measures to address fuel prices.

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