Temporary reduction in energy tax for fuels

In particular, the Bundestag voted on a bill from the CDU/CSU and SPD parliamentary groups, which provides for a temporary reduction in the energy tax on fuels. The aim of the so-called “Second Energy Tax Reduction Act” is to cushion in the short term the effects of sharp increases in energy prices as a result of international crises, in particular the Iran War. Specifically, the energy tax on gasoline and diesel is to be reduced for a limited period from May 1st to June 30th, 2026. The tax is reduced by 14.04 cents per liter, which, including sales tax, can lead to a possible relief of up to around 17 cents per liter. This is intended to provide financial relief for both consumers and companies, for example in trades or logistics. Since the energy tax is an indirect tax, it is expected that the reduction will be passed on to end customers through lower prices at gas stations. At the same time, it should be noted that this effect may occur with a delay because fuels that have already been taxed are initially resold. The draft law also emphasizes that the measure is temporary and is not intended to represent a permanent departure from energy or climate policy goals. Rather, it is intended to alleviate short-term economic burdens without fundamentally questioning the long-term transformation towards less dependence on fossil fuels. For the federal budget, the tax cut means reduced revenue of around 1.45 billion euros from energy tax as well as additional losses from sales tax. Overall, however, relief of around 1.6 billion euros is expected. The so-called second energy tax reduction law was approved with 451 yes votes. 134 MPs voted against, with Lutz Brinkmann (CDU parliamentary group) abstaining.