The Federal Council (Bundesrat) has given its approval to the fuel discount measure passed by the Bundestag. In a special session held in Berlin on Friday, the State Chamber (Länderkammer) opted not to refer the matter to the Mediation Committee.
Under the new arrangement, the energy tax rates for both diesel and gasoline will be reduced by 14.04 cents per liter each, implemented starting May 1st and lasting for two months. This reduction is expected to result in a consumer relief of up to 17 cents gross per liter, including the value-added tax component. According to the government coalition’s draft bill, this measure will save consumers and businesses approximately 1.6 billion Euros on fuel costs.
The primary goal of the legislation is to temporarily mitigate the sharp price hikes in fuel. The government explained that soaring energy prices, specifically crude oil prices, have been driven up by the Iran conflict. These increases threaten to dampen consumer demand and place strain on the broader economy through heightened uncertainty and declining consumer confidence.