Germany’s second fuel tax cut (Tankrabatt) of 2026 runs from October 1 to December 31. It lowers pump prices by up to 17 cents per litre.
The Bundestag and Bundesrat vote on the fuel tax cut on September 25, 2026.
Why Is Germany Cutting Fuel Taxes Again?
The governing coalition blames high fuel prices on US-Iran tension over the Strait of Hormuz. That tension has kept oil and refinery costs high since spring.
The government wants to help commuters and transport companies. Polling shows 78% think the government is not doing enough on energy costs.
The first Tankrabatt ran from May to June 2026. The government cited the same US-Iran tension and high oil costs then.
How Is the Fuel Tax Cut Moving Through Parliament?
The Bundestag’s Finanzausschuss approved the fuel tax cut on September 24, 2026. The CDU/CSU and SPD coalition added the fuel tax cut as an amendment to an unrelated insurance law, not as a standalone bill.
The insurance law is the Versicherungssanierungs- und -abwicklungsgesetz (VSAAG). It implements two EU insurance directives.
Attaching the fuel tax cut to the VSAAG let the government move faster.
The Finanzausschuss vote split along party lines.
| Party | Finanzausschuss Vote | Position on the Fuel Tax Cut |
|---|---|---|
| CDU/CSU and SPD coalition | For | Wants to help commuters and transport companies with high fuel costs |
| AfD | For | Blames high fuel prices on CO2 pricing and wants CO2 pricing scrapped |
| The Greens | Against | Says the fuel tax cut subsidizes fossil fuels |
| Die Linke (the Left Party) | Against | Says the fuel tax cut subsidizes fossil fuels and wants a windfall profits tax (Übergewinnsteuer) on energy firms instead |
NOTE: As of publication, the Bundestag and Bundesrat votes were scheduled for September 25, 2026. Both chambers were expected to approve the fuel tax cut, but it was not yet law.
How Much Will the Fuel Tax Cut Save You at the Pump?
The fuel tax cut lowers pump prices through the energy tax and VAT:
- Energy tax on petrol and diesel falls 14.04 cents per litre.
- With VAT included, the maximum saving reaches about 17 cents per litre.
- For a 50-litre fill-up, you save up to €8.50 if stations pass on the full cut.
If you drive in Germany, the fuel tax cut applies automatically. You do not need to register or apply for anything.
WARNING: Fuel retailers are not required to pass on the full fuel tax cut. The Monopolkommission found some savings from the first fuel tax cut did not reach drivers.
Don’t assume every petrol station cuts prices by the full 17 cents. Compare prices before you fill up.
Petrol stations may take a day or two after October 1 to apply the discount. Wait until then before a big refuel to save a few euros.
Why Do Economists Call the €2.4 Billion Fuel Tax Cut Poorly Targeted?
Economists call the fuel tax cut expensive and poorly targeted. They raise three concerns:
- Cost: About €2.4 billion in lost tax revenue over three months, plus €270 to €293 million in VAT losses.
- Targeting: The fuel tax cut benefits all drivers regardless of income.
- Fuel use: The fuel tax cut softens the high prices that would otherwise push people to use less fuel.
Critics raised the same concerns about the first fuel tax cut in May and June 2026.
