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Saxony-Anhalt pushes for emergency fuel tax cuts to ease driver costs

Soaring fuel prices spark a bold proposal: tax cuts to bring diesel back to 2025 levels. But will the savings reach drivers—or vanish at the pump?

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2 min read
The image shows a graph depicting the primary energy consumption by fuel in the reference case from...
The image shows a graph depicting the primary energy consumption by fuel in the reference case from 1980-2040. The graph is divided into four sections, each representing a different fuel source, and each section is further divided into percentages. The text accompanying the graph provides further information about the data.

Saxony-Anhalt pushes for emergency fuel tax cuts to ease driver costs

Saxony-Anhalt's Minister-President Sven Schulze has urged the federal government to slash energy taxes as fuel prices surge. His proposal aims to bring diesel costs back down to €1.60 per litre—the 2025 average—by reducing taxes until the market steadies again. Schulze also wants the Federal Cartel Office to ensure any savings directly benefit consumers at the pump.

The call comes as drivers face high fuel costs, with taxes and levies making up 50 to 65 percent of the price. For example, a litre of Super E10 at €1.94 includes 65 cents in energy tax, 15 to 18 cents in CO₂ charges, and 31 cents in VAT. Schulze criticised this system as a 'tax on taxes', where VAT is applied not just to the fuel itself but also to the energy tax and CO₂ levy.

This isn't the first time such measures have been proposed. In summer 2022, the federal government temporarily cut fuel taxes for three months to ease the impact of soaring prices after Russia's invasion of Ukraine. Back then, diesel prices had spiked to €2.32 per litre by March 2022, up from pre-invasion levels. Schulze now wants a similar intervention to prevent further financial strain on drivers. Beyond tax cuts, Schulze insists that any relief must reach consumers directly. He has called on the Federal Cartel Office to monitor the situation and ensure savings are passed on at petrol stations rather than absorbed by retailers or suppliers.

If approved, the tax reduction would lower fuel prices to levels seen in early 2025, easing the burden on motorists. The proposal also highlights ongoing concerns about how taxes inflate costs, with Schulze pushing for a fairer system. The federal government has yet to respond to the request.

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