Germany will lower tax on petrol and diesel by 17 cents per liter in a relief package worth €2.5 billion, the German government announced Friday. "Those who rely on their cars every day are reaching their financial limits. ... The relief package of €2.5 billion is no small sum in times of strained budgets," German Chancellor Friedrich Merz said. The tax discount is to be implemented next month. The measure, brokered between Germany's federal and state governments, is part of the package promised by Merz as fuel prices continue to climb in response to the war in Iran and the escalating conflict between Yemen's Iran-backed Houthis and Saudi Arabia.
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