Germany’s largest fuel retail chain, Aral, has pledged to rapidly implement a temporary fuel discount on the price pumps. The market leader confirmed in the “Westdeutsche Allgemeine Zeitung” that it will pass on this financial relief to customers immediately and fully once the measure becomes effective.
The fuel discount was passed by the Bundestag on Friday and subsequently approved by the Bundesrat in a special session. According to the coalition government’s draft legislation, the energy tax rates for both diesel and gasoline will be lowered by 14.04 cents per liter each, beginning May 1st and lasting for two months. Including the associated VAT component, this reduction amounts to a total relief of up to 17 cents gross per liter, which is expected to ease fuel prices for consumers and businesses by approximately 1.6 billion Euros.
The stated goal of this law is to cushion the current price shock in the fuel market. The ruling coalition argued that energy costs, especially crude oil prices, have risen sharply due to the conflict in Iran. This price inflation, they point out, risks reducing consumer demand and placing a strain on the economy due to general uncertainty and declining confidence.