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Germany Sets Two-Month Fuel Tax Cut as Klingbeil Seeks Early‑May Vote

Uncertainty over timing, costs and pump pass‑through clouds the plan.

Overview

  • The coalition, which agreed Monday to cut the mineral oil tax by about 17 cents per litre for petrol and diesel, limited the relief to two months.
  • Finance Minister Lars Klingbeil said he wants the bill through the Bundestag by early May and ordered his ministry to move the draft quickly.
  • Haulage and farm groups called the cut too small or too slow and warned that delays could push vulnerable firms toward insolvency.
  • Economists flagged weak pass‑through to drivers after a similar 2022 rebate, when diesel saw near‑full cuts but petrol only about 85 percent.
  • The package adds a voluntary tax‑free €1,000 employer bonus and leaves funding unclear, with planned tobacco‑tax rises already earmarked and a European windfall tax only under discussion.