Germany’s second fuel tax cut of the year came into force at midnight, with a three-month reduction in energy taxes expected to lower the price of petrol and diesel by 16.7 cents (18.9 US cents) per litre.
The government introduced the measure in response to exceptionally high fuel prices. September was by far the most expensive month on record for filling up in Germany, with fuel costs also contributing to inflation.
How much of the cut will be passed on to motorists is expected to become clear over the coming hours and days, as petrol stations are not directly required to lower their prices.
The measure technically applies only to fuel leaving storage facilities or refineries. However, prices at most filling stations are expected to fall quickly, as happened with previous fuel tax cuts in May and June and in 2022.
Fuel prices fell on Tuesday and Wednesday.
The fuels and energy industry association en2x said the tax reduction would be passed on from midnight. Germany’s ADAC motoring association was more cautious.
“Prices will gradually come down,” fuel market expert Christian Laberer said ahead of the measure taking effect.
“We are calling for the reduction to be passed on in full and as quickly as possible, but there is concern that part of the tax cut will not reach motorists.”
The measure has been criticized for being poorly targeted, reducing incentives to save fuel and potentially not being passed on in full to consumers.
Supporters argue there is currently no better way to provide relief to motorists.