Germany approves fuel tax discount

BERLIN, Sept 25 (Reuters) - Germany approved on Friday a gasoline tax discount, which will cost federal and state governments €2.5 billion ($2.85 billion).

The lower house of parliament approved the law, and the upper house raised no objections, meaning the law can be implemented.

The government will cut taxes on gasoline and diesel by €0.17 ($0.20) per litre from 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, Chancellor Friedrich Merz's governing coalition 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 already had a fuel tax discount for May and June that cost €1.6 billion, temporarily easing inflation.

($1 = 0.8777 euros)

(Reporting by Maria Martinez and Christian Kraemer, editing by Ludwig Burger and Thomas Seythal)