Oil Prices Soar: Germany Implements Energy Tax Cut, Allows Companies to Subsidize Workers for Relief
The German government has decided on short-term relief measures to address soaring oil prices. It plans to reduce the energy tax on gasoline and diesel by approximately 17 euro cents per liter for two months and allow companies to issue tax-free subsidies of up to 1000 euros to employees. This aims to alleviate the burden on the public and provide tax exemptions for corporate expenses. The fiscal deficit will be covered by raising tobacco taxes in 2026 and imposing a "windfall profit tax" on oil companies.
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- 📰 Published: April 13, 2026 at 18:25
- 🔍 Collected: April 13, 2026 at 18:31 (6 min after Published)
- 🤖 AI Analyzed: April 15, 2026 at 22:26 (51h 54m after Collected)
Central News
(Central News Agency reporter Lin Shangying, Berlin, 13th) As the US-Iran conflict shows no signs of easing, in response to continuously rising oil prices, the German government today approved short-term relief measures. It plans to reduce the energy tax on gasoline and diesel by approximately 17 euro cents (about NT$6) per liter for two months. At the same time, it will allow companies to issue tax-free subsidies of up to 1000 euros (about NT$37,000) to employees, hoping to reduce the burden on the public, and this expenditure by companies will also be tax-exempt.
The German federal government today announced a series of relief measures for high oil prices. A Central News Agency reporter also participated in the online live press conference. According to the plan, Germany will lower the diesel and gasoline energy tax by about 17 euro cents per liter for two months.
Labor Minister Bärbel Bas pointed out that this measure can collectively reduce fuel costs for consumers and businesses by about 1.6 billion euros, and it is expected that oil companies will pass on the tax reduction benefits to consumers.
Chancellor Friedrich Merz stated that the relief measures are expected to quickly improve the situation for drivers and businesses, and urged oil companies to fully reflect the tax reduction benefits in terminal prices.
In addition, the federal government also plans to allow employers to issue tax-free and social insurance-exempt subsidies of up to 1000 euros to employees this year as a "crisis allowance" in response to rising energy prices, allowing companies to directly support employees' living expenses. Since the subsidy is exempt from income tax and social insurance fees, it can increase employees' real income while reducing the burden on companies.
The federal government stated that this measure will provide flexibility for companies, allowing employers to decide whether to issue it. The purpose is to quickly deliver relief resources to workers, alleviating the pressure brought by inflation and rising energy prices.
To compensate for the fiscal gap caused by the energy tax reduction and subsidy measures, Germany plans to raise tobacco taxes in 2026 and supports the EU's assessment of imposing a "windfall profit tax" on oil companies. The federal government pointed out that the relief funds for soaring oil prices will be obtained from the energy industry through tax systems or competition law mechanisms.
Since shipping in the Strait of Hormuz was obstructed, German oil prices have soared. Compared with other EU countries, Germany levies higher energy taxes on fuel and an additional 19% value-added tax, and adopts a floating oil price system, leading to the phenomenon of "fueling tourists" where drivers queue up at the German border to refuel in neighboring countries.
On April 1, Germany implemented a new system, stipulating that gas stations nationwide can only raise oil prices once a day at noon, hoping to reduce price fluctuations and increase transparency. However, the effect was not significant. Last week during Easter, the average diesel price across Germany rose to about 2.48 euros (about NT$91) per liter, setting a new historical record in Germany.
Whether the new relief measures for high oil prices can effectively alleviate the burden on ordinary Germans remains to be seen. Chancellor Merz emphasized at the press conference announcing the relief plan today that the current measures are only the beginning, and a series of tax reforms targeting middle and low-income earners will be further promoted in the future to improve national governance efficiency and fairness and rebuild public confidence in government operations. (Editor: Chen Cheng-kung) 1150413
(Central News Agency reporter Lin Shangying, Berlin, 13th) As the US-Iran conflict shows no signs of easing, in response to continuously rising oil prices, the German government today approved short-term relief measures. It plans to reduce the energy tax on gasoline and diesel by approximately 17 euro cents (about NT$6) per liter for two months. At the same time, it will allow companies to issue tax-free subsidies of up to 1000 euros (about NT$37,000) to employees, hoping to reduce the burden on the public, and this expenditure by companies will also be tax-exempt.
The German federal government today announced a series of relief measures for high oil prices. A Central News Agency reporter also participated in the online live press conference. According to the plan, Germany will lower the diesel and gasoline energy tax by about 17 euro cents per liter for two months.
Labor Minister Bärbel Bas pointed out that this measure can collectively reduce fuel costs for consumers and businesses by about 1.6 billion euros, and it is expected that oil companies will pass on the tax reduction benefits to consumers.
Chancellor Friedrich Merz stated that the relief measures are expected to quickly improve the situation for drivers and businesses, and urged oil companies to fully reflect the tax reduction benefits in terminal prices.
In addition, the federal government also plans to allow employers to issue tax-free and social insurance-exempt subsidies of up to 1000 euros to employees this year as a "crisis allowance" in response to rising energy prices, allowing companies to directly support employees' living expenses. Since the subsidy is exempt from income tax and social insurance fees, it can increase employees' real income while reducing the burden on companies.
The federal government stated that this measure will provide flexibility for companies, allowing employers to decide whether to issue it. The purpose is to quickly deliver relief resources to workers, alleviating the pressure brought by inflation and rising energy prices.
To compensate for the fiscal gap caused by the energy tax reduction and subsidy measures, Germany plans to raise tobacco taxes in 2026 and supports the EU's assessment of imposing a "windfall profit tax" on oil companies. The federal government pointed out that the relief funds for soaring oil prices will be obtained from the energy industry through tax systems or competition law mechanisms.
Since shipping in the Strait of Hormuz was obstructed, German oil prices have soared. Compared with other EU countries, Germany levies higher energy taxes on fuel and an additional 19% value-added tax, and adopts a floating oil price system, leading to the phenomenon of "fueling tourists" where drivers queue up at the German border to refuel in neighboring countries.
On April 1, Germany implemented a new system, stipulating that gas stations nationwide can only raise oil prices once a day at noon, hoping to reduce price fluctuations and increase transparency. However, the effect was not significant. Last week during Easter, the average diesel price across Germany rose to about 2.48 euros (about NT$91) per liter, setting a new historical record in Germany.
Whether the new relief measures for high oil prices can effectively alleviate the burden on ordinary Germans remains to be seen. Chancellor Merz emphasized at the press conference announcing the relief plan today that the current measures are only the beginning, and a series of tax reforms targeting middle and low-income earners will be further promoted in the future to improve national governance efficiency and fairness and rebuild public confidence in government operations. (Editor: Chen Cheng-kung) 1150413