Germany announces €1.9 billion fuel price relief amid Iran war-driven oil surge

BERLIN: Germany's governing coalition on ​Monday announced ​fuel price relief for consumers and ​businesses worth 1.6 billion euros ($1.9 billion), following a spike in oil prices due to the Iran ‌war.

The ⁠energy ⁠tax on diesel and petrol will be ​reduced by about 0.17 euros per litre for a ​period of two months, a joint paper by the conservative CDU party and ​their centre-left SPD coalition partners ⁠said.

The Iran ‌war has forced countries ​including ​Germany to tackle the biggest-ever disruption ⁠to global energy supplies and a planned ​U.S. blockade of Iranian ports ​and coastal areas is further inflating crude oil prices.


Speaking at a press conference on Monday, Chancellor Friedrich Merz said the coalition was doing everything ‌it could to tackle problems caused by the Iran war, which has been put on hold ⁠for now in a fragile ceasefire deal.

The coalition partners also agreed to allow companies ​to pay a 1,000 euro relief bonus per employee, free of payroll taxes and social security charges.