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Germany Cuts Fuel Taxes by €0.17/L, Costs €2.5B

By Drooid · Sep 25, 2026, 11:11 PM UTC · How we work

Summary

Germany Cuts Fuel Taxes

Germany will cut gasoline and diesel taxes by €0.17 per litre from Oct 1 to Dec 31, costing €2.5 billion.
Germany will negotiate with oil firms to set a fuel price cap by Jan 1, 2027 at the latest.
Spain extended its March tax cut, lowering gasoline and diesel taxes by €0.05 per litre this month.
The EU released 400 million barrels from strategic reserves under an IEA agreement to ease market pressure.

Summary

European Utilities Boost Coal

European utilities will increase coal-fired generation by about 25% within the next six months.
Germany’s remaining coal plants are limited by fuel availability rather than economic factors.
TTF gas opened at $84.30 per MWh, 3% higher after a 4% jump.
Fitch Ratings raised its TTF price outlook, citing a 20% LNG supply cut from the Strait of Hormuz.
Analysts lifted the Q4 European LNG price forecast to €70/MWh from €53/MWh.

Summary

EU Prices Hit Record

Euro-super 95 petrol reached a weighted EU average of €2.063 per litre on 14 September, a record since 2005.
Across the EU, fuel taxes averaged €0.976 per litre, comprising 47.3 % of the pump price.
A Voxmeter survey showed 53.8 % of Danish respondents want politicians to lower fuel fees.
In France, fishermen blocked oil depots while 16 % of stations reported fuel shortages.

History

Historical Context

October 1973 OAPEC’s oil embargo drove crude prices from $3 to $12 per barrel—a four-fold rise by 1974. The shock pushed the European Economic Community to adopt national tax measures and bilateral oil deals, halting early integration steps. Today the EU’s fuel-tax cuts and a 400-million-barrel reserve release recall those 1970s stabilisation moves.

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Germany Cuts Fuel Taxes

Germany will cut gasoline and diesel taxes by €0.17 per litre from Oct 1 to Dec 31, costing €2.5 billion.
Germany will negotiate with oil firms to set a fuel price cap by Jan 1, 2027 at the latest.
Spain extended its March tax cut, lowering gasoline and diesel taxes by €0.05 per litre this month.
The EU released 400 million barrels from strategic reserves under an IEA agreement to ease market pressure.

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