Bundestag approves new fuel discount to reduce fuel prices

Berlin. The Bundestag has decided on another fuel discount because of the high fuel prices. The black-red coalition's law will reduce the energy tax on diesel and gasoline by 14 cents per liter from October to the end of December. With VAT, there is a total reduction of 17 cents per liter. As a final hurdle, the law should be approved by the Federal Council on Friday so that it can come into force on October 1st.

CDU financial politician Stefan Korbach said high prices were hitting private households and putting a strain on businesses. The fuel discount is “the best quickly available instrument” that works without applications. SPD parliamentary group deputy Armand Zorn pointed out that many people rely on cars to get to work. The coalition has also agreed on a “fuel price cap” that is intended to limit the scope for oil companies to increase prices.

Criticism came from the opposition. Green party leader Katharina Dröge called the fuel discount “a nonsense solution”. It had not been passed on in full in May and June and cost as much as the sum that all cuts in family benefits made up in the federal budget for one year.

The state is expected to lose 2.5 billion euros in taxes due to the fuel discount, half of which will be borne by the federal and state governments. There was already a two-month fuel discount in the spring to cushion the sharp rise in prices at the pumps as a result of the Iran war.