Overview
- Following Thursday's Bundestag debate, the coalition's bill would cut the mineral oil tax by about 17 cents per liter for May and June, alongside an optional tax-free €1,000 employer bonus.
- The Finance Ministry expects about €1.6 billion less revenue, and Chancellor Friedrich Merz said the bonus should also be available in 2027.
- Drivers may not see instant pump-price drops on May 1 because Germany levies the fuel tax at tank storage depots, so early May fuel can still carry the old rate.
- Parties remain split on a windfall-profits tax for oil firms, with Greens and the Left in favor, Economics Minister Katherina Reiche opposed, Finance Minister Lars Klingbeil supportive, and industry rejecting NGO claims of €1.18 billion in extra profits.
- To meet the May 1 start, a Bundesrat special session on April 24 is expected, while some CDU figures urge extending the rebate and critics warn the relief skews to higher-mileage, higher-income drivers.