Germany will temporarily reduce taxes on diesel and petrol by around €0.17 per liter for a two-month period, in an effort to ease rising fuel prices driven by escalating tensions and conflict involving Iran.
The announcement was made by Chancellor Friedrich Merz, who warned that the economic consequences of the conflict are likely to persist.
“We will feel the consequences of the war with Iran for a long time,” Merz said, emphasizing the broader economic risks linked to global energy instability.
Commenting on the recent political shift in Hungary following Viktor Orbán’s electoral defeat, Merz said the result “sends an important signal against right-wing populism.”
The German Chancellor also confirmed that additional coalition-agreed measures, including a mandatory health insurance bill, are expected to be voted on at the end of April.
