Fuel price tax reduction: Federal government implements relief

If the measures to relieve motorists and others are to come into force on June 1st, things have to be done quickly now: that of the The “Energy Tax Reduction Act” passed by the traffic light government was referred to the finance committee by the Bundestag on May 13. There will be a routine hearing next Monday (May 16).


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On April 27, 2022, the federal cabinet launched a relief package worth billions, which is intended to cushion the energy prices, which have risen sharply as a result of the Ukraine war. Drivers also benefit from this.

However, it is unclear whether the aid can really reduce the high prices. Ultimately, that will also depend on the course of the war and a possible stop in the supply of Russian gas.

In this way, the energy tax on fuel is reduced

From the beginning of June to the end of August 2022 – in other words, to coincide with the holiday travel season – energy taxes on fuel will be reduced as far as the EU directives allow. And this in the hope that the companies will also pass on the simplifications to the customers. at According to the Ministry of Finance, the tax rate for petrol is reduced by 29.55 cents per liter and for diesel by 14.04 cents.
The reduction is not without controversy, since the fuel prices are now significantly lower again after the interim horror numbers. According to the ADAC, the price curve for super petrol E10 had its negative peak on March 14 with a daily average of EUR 2.203 nationwide – that was a good 45 cents more than on the day before the outbreak of war. Diesel was the most expensive on March 10 at 2.321 euros per liter – an increase of almost 66 cents.

This is how much a monthly public transport ticket will soon cost

In order to further relieve consumers and employees, there will also be a nationwide flat rate of 9 euros for the monthly subscription for local and regional transport. So if it is possible, you can leave the car and Bus and take the train to work or to go shopping.

This is what the energy price flat rate looks like

Many motorists benefit indirectly from another measure: All employees and self-employed persons are to receive a one-off payment of 300 euros as an energy price flat rate. This support must be taxed as additional income.

The government wants to pay out the energy money via the employer as soon as possible. Instead, freelancers receive a reduction on the income tax prepayment.

This is what families and welfare recipients get

Similar to the Corona aid, families should receive additional support of 100 euros per child. And those who receive social assistance receive an additional one-time payment of 100 euros from the state.

What the tax cut costs the state

For the relief package, Finance Minister Christian Lindner (FDP) has to update the budget plans already submitted to the Bundestag with a supplementary budget and almost 40 billion euros in additional debt. This also includes economic aid, the extension of free corona tests and other measures.

According to the Treasury Ministry, the federal government will lose around 3.15 billion euros in revenue due to the temporary tax cut on fuel.

Who still has to agree

In addition to the Bundestag, the Bundesrat must also give its blessing. However, the Chamber of States is demanding a higher contribution from the federal government for the counter-financing of the 9-euro ticket.

Christian Lindner

Finance Minister Lindner (FDP) had initiated tax relief for petrol and diesel.

That’s what’s left of the after-tax help

As mentioned, the energy cost subsidy has to be taxed, so different amounts of the 300 euros remain in the wallet in real terms. Here are some recent calculations from the Taxpayers’ Association:

Single household with top earners: According to these calculations, a single person with tax class 1 and an annual salary of EUR 72,000 receives exactly EUR 181.80 in energy cost allowance. At the current fuel price, this would roughly calculate the purchase of 83.6 liters of diesel or 88.4 liters of premium E10 enable – a little more than a tankful of fuel.

fuel price

The prices at the gas stations have recovered a little – a tax cut is still planned.

Family with top earners: The same employee, but married and with one child, falls into tax class 4 and receives 184.34 euros from the energy price flat rate.

Average and low-income families: Anyone who earns an annual salary of EUR 45,000 under the same conditions will receive an energy subsidy of EUR 216.33. With an annual salary of 15,000 euros, it is already 248.83 euros.

Low earners: De facto, only those who earn less than 10,000 euros per year receive the full amount. This is already very close to the subsistence level, which is currently set at 9408 euros for single people in terms of tax law.

According to estimates by the German Economic Institute, families with a gross household income of 35,000 euros a year are the biggest beneficiaries of the package of measures.

Shared view of the benefits of the measures

The aid met with different responses after it was first announced: Ifo President Clemens Fuest criticized “relief with the watering can, fiscally expensive and not very accurate”. He was only able to gain something from the limitation of the energy tax reduction to three months. The economist Achim Truger added that this intervention was even “harmful from an incentive point of view”.

Armin Willingmann (SPD), Energy Minister of Saxony-Anhalt, praises the package: “It will make a significant contribution to securing social cohesion in Germany.” The Prime Minister of Schleswig-Holstein, Daniel Günther (CDU), recognized “a series of measures to cushion social hardship”.

This is how France supports its motorists

Germany is – once again – at the bottom when it comes to the implementation of political measures: In France, the government had already decided on April 1st and until the end of July to provide financial support in the form of a tank discount. Around 15 cents per liter fuelregardless of whether diesel or petrol, drivers are relieved.

The reduction takes place directly at the petrol station checkout or in the case of cashless payment by EC or credit card. Gas prices in France were fixed by law months ago. In addition, all French people who earn less than 2,000 euros net per month received a one-off payment of 100 euros from the state.

Poland extends its “inflation protection”

Gas station in Poland

Tank tourism to Poland can be worthwhile: a liter of petrol is currently around 70 cents cheaper there.

Fuel is still very cheap in Poland compared to Germany: premium petrol currently costs 1.38 euros, diesel 1.44 euros. Accordingly, tank tourism to our neighbors flourished. The 23 percent VAT on gas has been abolished since February 1.

What Italy is doing to relieve the gas station

Italy wants to tax energy suppliers additionally: It is planned to retrospectively levy ten percent taxes on additional profits for the past six months (compared to the same period last year). The money will flow into a fund that will support the population.

Belgium and the Netherlands cut taxes

Belgium and the Netherlands have already reacted to the jump in fuel prices and reduced the excise tax (similar to the German energy tax) for diesel and petrol and the VAT on natural gas, electricity and heating energy. The reduction leads z. B. with a tank filling for 60 euros to 10 euros saving.

Sweden is planning measures from June

In Sweden, which traditionally has very high taxes and the cost of living, measures will only be implemented from June 1st. The fuel tax is then to be reduced by 1.30 crowns, the equivalent of twelve cents. Diesel currently costs 2.43 euros in Sweden and premium petrol 2.38 euros per liter (prices as of March 24, 2022).

Clever Thoughts


Fuel price check to the minute

This is how the gas price is at gas stations in the area!

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Hungary has frozen gas station prices

Slovenia introduces a fuel price cap

Slovenia has capped the price at the pumps to 1.50 euros. As a result, there was heavy tank tourism from Italy and Austria. A few days ago, petrol cost up to 50 cents more in Carinthia. Prices are currently falling again.

Spanish government already active in April

Since April 1st, the price of petrol in Spain has been reduced by 20 cents per liter. Truck driver or freight forwarders should receive a one-off support of 1250 euros.

With material from Reuters, dpa, afp

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