Overview
- Coalition leaders Sepp Müller (CDU) and Armand Zorn (SPD) confirmed on Wednesday that the temporary fuel tax cut will not be extended and will expire at the end of June, taking effect as higher pump prices from July 1 become likely.
- The rebate cut energy taxes by about 14.04 cents per litre, roughly 16.7 cents including VAT, and is estimated to cost the state roughly €1.6 billion for May–June.
- Independent analyses from the ifo Institute and RWI show most of the tax cut reached drivers—estimated pass‑through averaged roughly 12–18 cents for diesel and 13–16 cents for petrol—but both studies report that a significant share of public funds stayed with oil companies.
- Critics including SPD dissidents, Greens and Linke argue the flat rebate disproportionately helped high‑consumption and higher‑income drivers, bluntly reduced incentives to save fuel and worked against climate goals.
- The government said it is ready to act quickly if prices spike after July 1 with options such as targeted cash support, changes to tax rules, a higher commuter allowance, stricter cartel enforcement or measures to curb excess profits while private relief efforts like Lidl’s free‑fuel tour continue to draw public attention.