Germany is planning a temporary reduction in fuel taxes following talks between coalition party leaders.
German Chancellor Friedrich Merz has announced that the government will lower taxes on diesel and gasoline by around 17 cents per liter for two months, according to Deutsche Welle.
On Monday morning, Merz said that the relief should be passed on to consumers by oil companies in order to ease the pressure from rising prices, reports Insajderi.
“This will quickly improve the situation for drivers and businesses in the country,” said Merz.
Fuel prices at pumps across Germany have risen significantly in recent weeks after fighting in Iran disrupted much of the passage of oil tankers through the Strait of Hormuz.
“This conflict, this war, is the root cause of the problems we are facing in our country as well,” Merz stated.
Regardless of the outcome, Merz warned that the effects of the conflict are likely to be long-lasting.
“The German economy will face a considerable burden over an extended period,” he added.
