Overview
- The Bundestag and Bundesrat approved a temporary cut in the energy tax on petrol and diesel on 25 September and the law takes effect from Thursday, 1 October through 31 December 2026 at a net reduction of 14.04 cents per liter, about 17 cents including VAT.
- The government estimates the measure will cost about €2.5 billion with federal and state budgets sharing the burden and no separate cash payments to groups such as pensioners.
- Past experience shows incomplete pass-through of similar rebates, with the Bundeskartellamt reporting roughly 20 percent of the prior cut did not reach drivers and the Ifo Institute finding diesel received only about 73 percent of the benefit.
- Pump prices will not fall uniformly at 00:00 on 1 October because stations may still hold fuel bought under the old tax rate, local pricing and wholesale costs vary, and there is no legal obligation for companies to pass the cut on.
- Regulators will monitor pricing and the government plans talks with the oil industry about a possible, separate price cap for implementation by 1 January 2027, while economists and consumer groups call the rebate costly, untargeted, and likely to blunt fuel‑saving incentives.