The government of Germany has announced a temporary fuel tax reduction to cushion consumers against rising energy prices linked to the U.S.–Iran conflict.
Under the measures, petrol and diesel taxes will be cut by approximately 17 euro cents per litre for a two-month period, as pump prices exceed two euros per litre in parts of the country.
The intervention is expected to deliver savings of about 1.6 billion euros to consumers. Authorities are also considering a windfall tax on energy companies and enhanced regulatory powers to curb potential price manipulation within the market.