The government expects to provide relief of approximately €1,6 billion for motorists and businesses. (Photo: © lightpoet/123RF.com)
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April 2026
Following consultations in the coalition committee, the federal government has announced that it will temporarily reduce the mineral oil tax in order to relieve the burden on consumers and the economy.
Due to the war in the Middle East and the resulting sharp rise in fuel and energy prices, the German government consulted in its coalition committee on what relief measures it could implement for citizens and businesses. It has now decided to reduce the mineral oil tax by 17 cents per liter of diesel and gasoline. However, this reduction will initially only apply for two months.
The government expects oil companies to pass on the tax relief to consumers and anticipates savings of approximately €1,6 billion for motorists and businesses. The governing coalition also plans a €1.000 tax-free bonus for employees. Employers will be permitted to pay this bonus to their staff this year without incurring any social security contributions. To compensate for the lost revenue, the tobacco tax is to be increased later this year.
At the beginning of April, the German government had already introduced a package of measures to combat high fuel prices. Gas stations are now only allowed to raise their prices once a day, at noon. Price reductions are possible at any time. This measure has so far proven largely ineffective. In addition, the government has tightened antitrust abuse control in the fuel sector, enabling the Federal Cartel Office to more easily take action against dominant companies if they suspect excessive pricing.
The skilled trades welcome the measures introduced by the federal government but call for improved framework conditions that will have a long-term impact. The reduction of the mineral oil tax is a long overdue step to ensure that the state does not profit from the crisis while consumers and businesses suffer from high prices, says Jörg Dittrich.
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The president of the German Confederation of Skilled Crafts (ZDH) also emphasizes that the measures are designed to be short-term. They can serve as a temporary solution, but structural changes are still necessary – also to respond to increasing geopolitical risks and profound economic and political changes.
Dittrich: "This includes reliable framework conditions as well as permanently lower energy and electricity costs. The reduction of the electricity tax for everyone to the European minimum, as stipulated in the coalition agreement, should therefore be implemented promptly. In the interest of setting clear priorities, it may be sensible to postpone other measures, such as the mothers' pension."
It is important to rapidly expand the energy supply, reduce dependencies, and also ensure the long-term sustainability of social security systems. "Only with such a comprehensive approach can the competitiveness of the location be sustainably secured," said Dittrich.
With regard to the planned tax relief bonus, the German Confederation of Skilled Crafts (ZDH) criticizes the one-sided distribution of responsibility to the detriment of employers. The fact that the relief for citizens is to be financed by means of a tax- and contribution-free bonus represents an additional challenge for many businesses in the current economic climate.
"Given the fragile economic situation, it remains unclear how many businesses, due to their strained earnings and liquidity, will actually be able to take advantage of this." Targeted relief measures for businesses, such as those related to the solidarity surcharge, could have helped here, but these have not yet been planned. Therefore, it is crucial that the announced income tax reform also contributes to the relief of sole proprietorships and partnerships.
The automotive industry's reaction is also mixed: On the one hand, the German Association of Motor Trades and Repairs (ZDK) is pleased that there are at least some concrete measures to provide relief. However, the temporary reduction in energy tax falls short of ensuring "noticeable and sustainable relief" for households and businesses. "The measures remain far too piecemeal," criticizes ZDK President Thomas Peckruhn.
"Now would be the moment for decisive, substantial growth impulses instead of short-term symbolic politics. What we need is a permanent calibration of the energy tax with the CO2 pricing of fuels – and not just a political flash in the pan." The ZDK therefore expects a permanent reduction of the energy tax to the European minimum level. The current tax rates offer sufficient scope for this.
At the same time, the association proposes using CO2 pricing specifically as a steering instrument to promote biofuels and synthetic fuels. "The CO2 price is not an end in itself, but a steering instrument – we must design it in such a way that it enables climate protection, instead of making mobility more expensive and hindering alternatives from entering the market," says Peckruhn.
"The planned relief is a first step, but it falls far short of what consumers and businesses need right now. Instead of short-term adjustments, we finally need the courage for a structural reform of fuel taxes – with lasting, noticeable relief and clear incentives for technological openness and affordable mobility," Peckruhn concludes.
Willi Seiger, president of the German Metalworkers' Association , considers the fuel tax relief absolutely necessary. "While it is expensive, it directly benefits metalworking companies and their employees. Lower prices at the pump provide immediate relief for both businesses and employees. Long-term models help neither the economy nor the consumer," Seiger stated. However, he believes the proposed two-month period is insufficient.
Seiger is also critical of the relief bonus: "It raises expectations among employees that many companies cannot meet given the difficult economic situation. Hardly any small or medium-sized metalworking company can currently finance additional wage costs due to the economic climate and the already high cost structures in Germany. For example, a company with 55 employees incurs an additional €55.000 that cannot be offset by the savings from the reduced fuel tax cut."
The special payments are appropriate and important if they are financed by the promised savings in the federal budget. Seiger: "Now, as always, the chosen political solution leads to an additional burden on our medium-sized businesses. It deprives companies, which are under enormous economic pressure due to transformation processes, of liquidity and reduces the returns needed for important investments in necessary restructuring measures."
The Central Association of the German Bakery Trade also views the decisions with reservation. While measures such as lowering the energy tax on diesel and gasoline do relieve pressure on businesses, they are only designed for the short term and can only serve as a temporary measure. The baking trade had expected more: "The direction is right in principle, but the pace, scope, and depth of the measures are far from sufficient. Our businesses need fundamental reforms that contribute to overall structural improvements in the economic framework," emphasizes Friedemann Berg, Managing Director of the Bakery Association.
Germany needs not only reliable framework conditions but also permanently lower energy and electricity costs, clear prospects for investment, and planning certainty. The promised reduction of bureaucracy must also be further advanced. The association therefore calls for swift action to specifically strengthen the competitiveness of small and medium-sized enterprises (SMEs). This includes tax relief for craft businesses and an amendment to the Working Time Act.
The plumbing, heating, and air conditioning (PHVAC) industry is reacting somewhat more strongly, criticizing in particular the relief bonus. They argue it is not a genuine relief measure, but rather a shift of government responsibility onto businesses. "What is being sold here as quick aid means in practice: the government makes promises – and the business owners are expected to pay," explains Michael Hilpert, President of the German Association for Plumbing, Heating, and Air Conditioning (ZVSHK).
Especially at a time when many craft businesses are themselves struggling with rising energy, material, and personnel costs, this sends completely the wrong signal. Hilpert: "Anyone who believes that businesses can pay their employees additional bonuses of this magnitude in the short term is misjudging the economic reality in the skilled trades." Many businesses are operating at their limits, but are now supposed to "serve as an extended arm of government relief policies."
This is neither fair nor responsible. "Such measures don't solve a single structural problem. What we need are sustainable relief measures – on energy prices, taxes, and bureaucratic burdens. Only then can we create the necessary planning certainty for investment and employment." The way things are going now gives the impression that politicians are testing the limits of what they can go. That's dangerous. Because anyone who persistently ignores the capabilities and limits of small and medium-sized enterprises risks economic damage and further loss of trust. "We don't need symbolic politics. We need reliable, fair, and economically viable solutions."
The planned tax- and contribution-free relief bonus is misguided, says the Central Association of German Electrical and Information Technology Trades (ZVEH). Politicians promise relief but don't finance it themselves. Instead, they put pressure on companies to meet employee expectations on a voluntary basis. Furthermore, such a bonus has the potential to influence ongoing collective bargaining processes, thus weakening collective bargaining autonomy.
"The proposed relief bonus is not a viable concept. Especially in the electrical trades, which are predominantly comprised of small and medium-sized enterprises, such a crisis bonus reaches clear economic limits. Given the fragile economic situation, it is questionable whether companies can factor in additional costs. Before employees receive relief, the companies themselves must first experience tangible relief," explains ZVEH President Stefan Ehinger.
"The results of the coalition committee do not adequately address the situation of the skilled trades in Brandenburg," explains Robert Wüst, President of the Brandenburg Chamber of Skilled Crafts . A two-month reduction in energy tax will remain a flash in the pan. "In a large, sparsely populated state like Brandenburg, where businesses have to travel long distances every day, we need permanently reliable energy prices and less bureaucracy, not just short-term measures. The announced antitrust measures are also no substitute for a genuine energy and location strategy. A tax-free bonus of €1.000 for employees is simply unaffordable for many of our businesses," says Wüst.
"What we need are lasting reductions in social security contributions, payroll taxes, and administrative costs." While the automotive industry receives extensive support, the skilled trades lack the necessary incentives for investment, digitalization, securing skilled workers, and business succession. Additional burdens also threaten the reform of statutory health insurance.
"Even today, rising social security contributions put labor-intensive trades at a competitive disadvantage. The decisions send some signals, but fall short of what the trades in Brandenburg urgently need. Without stable and reliable framework conditions, it will not be possible to secure economic strength, security of supply and regional value creation in the long term."
The skilled trades sector in Saarland also sees both positive and negative aspects: The reduction in energy tax is a first concrete step from which Saarland's craft businesses and their employees could benefit, says Helmut Zimmer, President of the Saarland Chamber of Skilled Crafts . However, since the measure is temporary, Zimmer says that "the long-term and structural signals we urgently need to permanently reduce energy and electricity costs are lacking."
Zimmer expresses doubts about the effectiveness of the announced tax- and contribution-free bonus. "Rising energy prices are leading to higher costs for materials and transport – this is already putting a heavy strain on businesses. The scope for additional bonus payments is therefore very limited for many companies." Hans-Ulrich Thalhofer, Deputy Managing Director of the Chamber, adds: "The breaking point has long been reached for many craft businesses. Now we finally need measures that make the social security systems sustainable in the long term and ensure Germany's future economic viability."
He is critical of the federal government's short-term and temporary measures. Therefore, he calls for a permanent reduction of the electricity tax for everyone to the European minimum as a first step that would provide much-needed relief for many businesses.
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