Germany: Autogas tax reduction extended until 2022


The Finance Committee of the German Bundestag agreed on an extension of the energy tax reduction for Autogas by the end of 2022. “The decision of the Finance Committee sends a clear signal that Autogas will continue to play an important role in the future mobility sector as a low-polluting and affordable alternative fuel,” commented Uwe Thomsen, Managing Director of LPG supplier Propan Rheingas GmbH & Co.KG.

Autogas is the most important alternative fuel in Germany. With 7,000 LPG filling stations nationwide and over 40,000 stations in Europe, the Autogas industry has already built up a comprehensive network in the past 15 years, which also provides cross-border supply guarantee for the German car driver.

Autogas is also a clean burning fuel and thus makes a direct contribution to climate and environmental protection. On average, the CO2 emissions are reduced by 21% compared to gasoline. In real driving emissions, Autogas can already reduce the fine dust emissions of gasoline-powered Otto engines by up to 99%, according to a study of HTW Saarland. Compared to diesel, it also produces only 1/50 of the harmful nitric oxides.

“By opting for a further tax exemption for Autogas beyond 2018, we now have the chance to immediately reduce the nitric oxide and particulate matter levels in urban areas,” added Thomsen. “This is an important signal to all drivers, commuters, frequent travellers, young people and families, especially in times when diesel car drivers are about to leave their vehicles in front of restrictions of circulation.”

The German Liquefied Gas Association also welcomed the decision, as the amendment of the Energy Tax Act recognises the environmental benefits of Autogas as well as the wide acceptance among consumers. Autogas will continue to meet with a positive response from consumers: Autogas is significantly cheaper than gasoline even after the complete loss of the tax benefit from 2023 onwards. In addition, unlike diesel drivers, Autogas users do not have to comply with driving restrictions. If you want to know more, please visit this link.