Prices at fuel stations fell on Friday in various areas of Germany, with the entry into force of the tax reduction, reports the DPA agency, quoted by Agerpres.
Berlin's parliament passed the tax cut last month as part of measures to ease the burden on consumers from rising energy prices following the Iran war.
Some economists have criticized such measures, saying governments should do better to provide targeted aid to vulnerable households.
Fuel taxation (gasoline and diesel) will be reduced by approximately 0.17 euros per liter in May and June. This support for households and companies is worth 1.6 billion euros.
Data from the German Automobile Club (ADAC) show that in many places petrol station prices fell below two euros per liter on Friday morning, especially for E10 petrol and in some cases for diesel.
How much does gasoline and diesel cost at gas stations in Germany?
In Munich, E10 costs under two euros per liter at most gas stations, with some even under 1.90 euros per liter. For diesel, the threshold of two euros per liter is not reached in more than half of the cases.
In Berlin, E10 is under two euros per liter at most petrol stations, but less so for diesel, while in Hamburg E10 costs less than two euros per liter at more than half of the petrol stations, with some even below €1.90 per litre. In contrast, diesel generally exceeds two euros per liter.
Germany's move to cushion the impact of rising prices
This month, Germany's parliament also approved a support bonus for employees of up to 1,000 euros ($1,169.30) as part of a package designed to lessen the impact of high gas prices, an effect of the Iran war.
Under the plan, until June 30, 2027, companies can pay employees a one-time bonus. Payments are tax deductible for employers and non-taxable for employees.
The bonus is granted voluntarily, increasing the uncertainties regarding the number of companies that will apply this measure, taking into account the difficult economic context.
The ruling coalition in Germany estimates that the tax revenue lost following the implementation of the measure will amount to at least 2.8 billion euros. To help finance the measure, excise duty on tobacco will rise this year.
The bonus is part of a broad package of support measures after a major rise in gas prices in Germany. Business groups have criticized the Government for shifting the burden of supporting households to employers.
During the energy crisis that followed Russia's invasion of Ukraine, Germany introduced a similar tax-free bonus of up to €3,000.
