
Germany has decided to intervene with emergency measures to cope with the increase in fuel prices, caused by the escalation of the conflict in the Middle East.
The German government has approved a temporary reduction in fuel tax by 17 cents per liter on gasoline and diesel, a measure that will be in effect for two months. The aim is to ease the financial burden on households and businesses that are facing rising costs.
Chancellor Friedrich Merz warned that the effects of this conflict will not be short-term.
"The consequences of this war will be felt for a long time, even after it ends. The government will do everything in its power to support the economy and alleviate the situation of citizens," he declared.
As part of the package, businesses will be able to give employees a relief bonus of up to 1 thousand euros during 2026, without being burdened with taxes or insurance contributions.
The decision comes at a difficult time for the German economy, which remains fragile after the shocks of recent years.
After contraction in 2023 and 2024 and minimal growth of 0.2% last year, the new pressure from the energy crisis risks further slowing the recovery.