Germany news: Lawmakers lower fuel tax amid high gas prices

German citizens may experience a drop in fuel costs next week following the approval of a legislative change to cut the fuel tax by €0.17 per liter. The move aims to ease financial pressure on consumers grappling with surging energy prices linked to the US-Israeli conflict in Iran. The lower house of parliament, the Bundestag, finalized the measure on Friday, with 453 members supporting it and 134 opposing. The upper house, Bundesrat, is set to deliberate the bill in a special session later today.

Financial Relief and Criticism

Prices for E10 gasoline climbed to €2.18 per liter earlier this month, while diesel reached nearly €2.44 per liter—equivalent to $9.64 and $10.80 per US gallon, respectively. ADAC, the automobile club, reported Thursday’s average prices at €2.07 for E10 and €2.15 for diesel. The government claims the tax cut will save €1.6 billion ($1.9 billion) annually, though economists have questioned its effectiveness in targeting those most in need.

“This won’t do. Back in the day, the FDP still had style and decency,” wrote the Christian Democratic Union (CDU) on X, criticizing Wolfgang Kubicki’s remarks.

Political Fallout Over Remarks

Free Democrat (FDP) politician Wolfgang Kubicki drew flak after using a provocative expression to mock Chancellor Friedrich Merz during a news podcast. The phrase, “I’ll show you, you egg ass!” was his own invention, but it sparked backlash from Merz’s CDU and party colleague Marie-Agnes Strack-Zimmermann. Strack-Zimmermann argued that the FDP’s role is to uphold liberalism and avoid alliances with far-right groups like the Alternative for Germany (AfD), stating, “Whoever leads the party to the right, leads the party to its demise.”

Kubicki also challenged the FDP’s longstanding firewall policy, which bars collaboration with radical parties. He asserted, “It’s neither in the constitution, nor the law. I don’t recognize firewalls.” The debate over the tax cut and political strategy continues as the FDP faces internal and external scrutiny.

Protests and Broader Concerns

Meanwhile, the Fridays for Future environmental group demanded nationwide strikes, targeting Energy Minister Katherina Reiche for policies favoring fossil fuel industries. Protests are anticipated in around 60 cities. Additional pressure is mounting on German seniors due to pension fund challenges and rising living expenses. Workers at luxury carmaker Porsche are also bracing for reduced bonuses as the company struggles financially.

Follow DW for these stories and more. To view this video, enable JavaScript and upgrade to a browser supporting HTML5 video. Guten Morgen from DW’s Bonn newsroom: We begin with a clash over sharp language and a right-wing shift from the FDP’s leadership contender.