Overview
- SPD leaders, who urged caution Monday, said the fuel-duty cut cannot become a permanent fix, while Bavaria’s Markus Söder signaled he is open to discussing an extension if prices stay high.
- The temporary measure, in place since early May, lowers the energy tax by 14.04 cents per liter, which translates to about 16.7 cents off pump prices once VAT is factored in, and it is set to expire at the end of June.
- A government spokesperson said the policy is working for now and confirmed a decision on next steps will come around the end of June.
- The Ifo Institute reported incomplete pass-through to pump prices and called an extension inadvisable because the relief is costly and not well targeted, with foregone revenue estimated at up to €1.6 billion.
- Prices hovered near €2 per liter over the weekend as Diesel dipped just below E10, and the ADAC urged a mid-June review and tweaks to the noon-only price-rise rule that it says distorts daily pricing.