Berlin mulling fuel tax cut as Mideast war pushes up prices: minister

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Germany could cut taxes on fuel to try and protect drivers from surging prices as the war in the Middle East rumbles on, said the country’s Energy Minister Katherina Reiche, reports AFP.

Crude oil prices have risen around 20 percent this month as the United States and Iran remain at loggerheads and Saudi Arabia was forced to shut a key pipeline as it battles Houthi fighters in Yemen.

Speaking at a conference of G20 energy ministers in Houston, Reiche said Berlin was mulling a temporary cut in VAT on fuel from 19 to seven percent.

“I understand citizens’ worries when they fill up their car in the morning,” Reiche said.

“That is why we are currently discussing how we can provide swift and tangible relief.” “In my view, a sensible approach would be a temporary reduction in VAT on fuel from 19 per cent to seven percent,” she added.

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