Temporary reduction in energy tax on fuels from 1 May 2026

On 13 April 2026, the German government announced its intention to temporarily ease the financial burden on petrol stations by temporarily reducing the energy tax on fuels. The reason for this was the ongoing blockade of the Strait of Hormuz in connection with the war in Iran and the subsequent rise in oil prices. As a result, fuel prices had risen significantly worldwide. 

From 1 May to 30 June 2026, tax rates on fuels (petrol, diesel and equivalent fuels such as biofuels or biodiesel) will therefore be reduced by 14.04 cents per litre. As the energy tax forms part of the basis for calculating VAT (sales tax), this combination results in a planned reduction of as much as 17 cents per litre.

However, it remains to be seen exactly how the reduction will affect petrol station prices in practice. The Federal Government expects the tax cut to be passed on in full to consumers. However, oil companies and petrol station operators are not legally obliged to do so. In any case, the Federal Cartel Office will be closely monitoring the price response. 

Added to this is an effect arising from the method of levying the energy tax, namely the fact that the energy tax is not incurred only when refuelling at the petrol station, but already beforehand, when the tax suspension procedure for the fuels ends – that is, regularly when they are withdrawn from storage depots for delivery to petrol stations. This means that on 1 May 2026, petrol stations will initially still be selling the quantities of fuel that were taxed at the current, higher energy tax rate upon delivery. Only later, as these stocks are sold off, will the quantities now subject to the reduced tax rate come onto the market. Consequently, however, depending on supply and demand, their sale will in practice extend beyond 30 June 2026.

On 29 April 2026, the German Customs published a corresponding notice on its website.

In particular, it highlights the impact on potential energy tax relief. The reduction will mean that, in any event, no tax relief under Section 47a of the Energy Tax Act (own consumption) and Section 56 of the Energy Tax Act (local public transport) will be available for the fuel quantities concerned. The reason for this is that, from a competition law perspective, these tax reliefs are regarded as state aid, which is only legally permissible if certain minimum tax rates are observed. The planned reduction of 14.04 cents per litre means that the tax burden falls to the minimum required under state aid law, and a further reduction is no longer possible.

The situation is different for the remaining energy tax relief measures, where the quantities concerned can still be eligible for relief – though, of course, only up to the amount of the reduced tax actually paid.

It is important for fuel-consuming companies wishing to claim these reliefs to ensure precise measurement and record-keeping in order to clearly distinguish the quantities eligible for relief from those subject to standard taxation.