BERLIN, Sept. 25 (Xinhua) -- Germany's two houses of parliament on Friday approved a law to temporarily cut fuel taxes, clearing the way for lower costs on petrol and diesel as record-high fuel prices weigh on households and businesses.
The Bundestag, Germany's lower house of parliament, and the Bundesrat, which represents the country's 16 federal states, both approved the measure. It will take effect on Oct. 1 and run through the end of this year, the federal government said in a statement.
Under the measure, taxes on petrol and diesel would be cut to provide relief of around 17 euro cents (0.19 U.S. dollars) per liter, similar to a temporary reduction introduced in May and June.
The total cost of the tax reduction is estimated at around 2.5 billion euros (2.85 billion dollars), with federal states contributing half of the amount, the government stated.
Citing renewed escalation of the Middle East conflicts, the government said higher energy and fuel prices had placed a heavy burden on consumers and the German economy.
Berlin is also planning further measures to contain fuel costs. The government said it would hold talks with the oil industry to introduce a temporary cap on petrol and diesel prices by Jan. 1, 2027 at the latest.
Higher energy costs have added to inflationary pressure in Europe's largest economy. Germany's inflation rate rose to 2.9 percent in August from 2.8 percent in July, while energy prices jumped 10.5 percent year-on-year, official data showed. ■