Germany approved yesterday a fuel tax discount, which will cost federal and state governments €2.5 billion ($2.85bn).
The lower house of parliament approved the law, and the upper house raised no objections, meaning the law can be implemented.
The government will cut taxes on petrol and diesel by €0.17 ($0.20) per litre from October until the end of December to help citizens deal with fuel prices sent soaring by the Iran war.
As the Middle East conflict shows no signs of easing, Chancellor Friedrich Merz’s governing coalition has been forced to revive relief measures for consumers and companies after temporary moves earlier this year, trying to contain public discontent and the rise of the far-right.
Germany already had a fuel tax discount for May and June that cost €1.6bn, temporarily easing inflation.
German authorities said inflation eased during the two months when the earlier fuel tax discount was in effect.
&uuid=(email))