Germany temporarily cuts fuel tax

The German government has agreed a package of measures to reduce fuel prices for consumers and businesses due to rising energy prices due to the Gulf War.

The energy tax on diesel and petrol will be reduced for two months by approximately 0.17 euros per liter.

The coalition also agreed to allow companies to pay employees a one-time benefit of 1,000 euros without withholding payroll taxes or social security contributions.

German Chancellor Friedrich Merz said he expects energy companies to translate temporary fuel tax cuts into lower prices for consumers.