Fuel discount takes effect in Germany – prices at filling stations immediately drop

In Germany, a temporary tax discount on gasoline and diesel came into effect on October 1, and already in the first hours after its launch, a noticeable price reduction was recorded at some filling stations.

According to Frankfurter Allgemeine Zeitung, prices began to drop rapidly around midnight. On the morning of October 1, Super E10 gasoline at some stations already cost less than 2 euros per liter.

This is the first concrete result of the new fuel package, which the German federal government approved in September due to the sharp rise in gasoline and diesel prices. Until December 31, the energy tax on both types of fuel is reduced by approximately 14 cents per liter. Taking into account the lower VAT, the total tax savings amount to about 16.7-17 euro cents per liter.

The federal government estimates the total support for households and businesses at approximately 2.5 billion euros. Half of the costs will actually be borne by the federal states through the redistribution of VAT revenues.

On the eve of the program launch, fuel in Germany remained expensive. According to ADAC data for September 30, the average price of Super E10 was about 2.258 euros per liter, and diesel – 2.409 euros.

At the same time, the price reduction may occur unevenly. The tax discount applies at the time of fuel supply, so some filling stations may still sell stocks purchased at old prices. ADAC expects that over the first days of October, the discount will gradually be fully reflected in retail prices.

The German government introduced the measure due to high energy prices, which intensified against the backdrop of the war in the Middle East. Separately, Berlin plans to agree with fuel companies on a temporary mechanism to cap fuel prices from 2027.

Based on materials from: Frankfurter Allgemeine Zeitung, German government, ADAC