Germany's lower house of parliament approves fuel tax discount

By Reuters News

By Maria Martinez

BERLIN, Sept 25 (Reuters) - Germany's lower house of parliament approved on Friday the second temporary gasoline tax discount this year, which will cost federal and state governments €2.5 billion ($2.85 billion).

Following approval by the lower house, the upper house of parliament -wherethe states are represented - is expected to also pass the fuel price discount later on Friday.

The government will cut taxes on gasoline and diesel by €0.17 ($0.20) per litre from the beginning of October until the end of December to help citizens deal with fuel prices sent soaring by the Iran war.

As the Middle East conflict shows no signs of easing, the German government has been forced to revive relief measures for consumers and companies after temporary moves earlier this year, trying to contain public discontent and the rise of the far-right.

Germany approved in April a fuel tax discount for May and June to cushion the impact of higher petrol prices which cost €1.6 billion and, during the two months it was in effect, inflation eased.

($1 = 0.8777 euros)

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