Germany and Philippines have announced fuel tax cuts to cushion the impact of rising energy prices בעקבות the ongoing conflict involving Iran.
German Chancellor Friedrich Merz said his government would reduce petrol and diesel taxes by about 17 euro cents per litre for two months, following a sharp spike in global oil prices.
The surge in prices comes after the collapse of US-Iran peace talks and actions by Donald Trump to impose a blockade on the Strait of Hormuz—a critical global oil transit route.
Merz described the conflict as the “root cause” of current economic pressures, warning that its effects on Europe’s largest economy could be long-lasting. In addition to tax cuts, German employers will be allowed to offer tax-free bonuses of up to €1,000 to help workers cope with rising inflation.
Meanwhile, Philippine President Ferdinand Marcos Jr. announced reductions in excise taxes on liquefied petroleum gas (LPG) and kerosene to ease the burden on households.
Under the new measures, LPG prices will drop by 3.36 pesos per kilogram, while kerosene will be reduced by 5.60 pesos per litre—fuels widely used for cooking, especially among low-income households.
The Philippines, which relies heavily on Middle Eastern oil supplies, has been significantly impacted by disruptions linked to the Strait of Hormuz. Diesel prices have reportedly more than doubled since the start of the conflict, driving inflation and increasing the cost of living.
Both governments say the measures are aimed at providing immediate relief, though officials warn that the broader economic impact of the crisis may persist.
