Germany and the Philippines have announced fuel tax cuts as both countries grapple with soaring energy prices triggered by the escalation of the US-Israeli conflict with Iran.
In Berlin, Chancellor Friedrich Merz said the government would reduce fuel duties by around 17 euro cents per litre for petrol and diesel for a two-month period. The measure is intended to ease pressure on households and businesses facing higher transport costs, especially those whose work requires long hours on the road. To offset the lost revenue, the government will bring forward a planned increase in tobacco taxes. Finance Minister Lars Klingbeil said the move was part of a broader effort to cushion the economic impact of the conflict, which Merz warned would weigh on Germany’s economy for an extended period. Leading economic institutes have already downgraded growth forecasts for 2026 from 1.3 per cent to 0.6 per cent, citing the energy shock and other pressures such as US tariffs and competition from China.
In Manila, President Ferdinand Marcos Jr announced excise tax reductions on liquefied petroleum gas and kerosene to help households cope with rising fuel costs. The tax on LPG will be cut by 3.36 pesos per kilogram, and kerosene by 5.60 pesos per litre. Both fuels are widely used for cooking, with kerosene particularly important for poorer families. Marcos said a government crisis committee would meet on Tuesday to consider further adjustments to taxes on petrol and diesel, the main fuels for public transport. The Philippines imports most of its crude oil from the Middle East and refined products from Asian refineries reliant on shipments through the Strait of Hormuz, which Iran has effectively closed. Local diesel prices have more than doubled since the start of the conflict, and March inflation data showed food prices rising nearly twice as fast as in February.
Both governments stressed that the measures were temporary and that broader economic risks from the conflict would persist.
