Germany cuts fuel tax 14 cents/liter through 2026, €2.5B relief package

Germany's federal and state governments agreed to reduce energy tax on gasoline and diesel by 14 cents per liter (17 cents incl. VAT) until end-2026, with states contributing €1.25B via fixed VAT. The package, totaling €2.5B, takes effect Oct 1. This is a targeted fiscal response to high fuel prices, likely to slightly ease inflation pressure but with limited macro impact.