Soaring fuel prices in Germany spark political debate and consumer anger

Gas stations in Germany are only allowed to raise their fuel prices once a day, at 12 noon. In Berlin, on the morning of September 15, E10 gasoline cost about €2.25 ($2.60) per liter and diesel about €2.37. At noon, prices rose by about €0.20 per liter. The highest prices were recorded at a highway gas station in southern Berlin, where Super Plus cost €3.03 per liter.

Drivers are angry. While it's possible to use public transportation in large cities, residents of rural areas have hardly any realistic alternative to driving. Those living in regions near national borders have an advantage.

On September 7, filling up a 60-liter tank with E10 gasoline cost about €31 less in the Czech Republic and Poland than in Germany. In Luxembourg, the difference was €28, and in Austria, €25. These figures were calculated by the Federal Statistical Office.

Germany has nine neighboring countries. Gasoline is significantly cheaper in seven of them, and diesel is cheaper in six. Only in the Netherlands and Denmark do drivers have to pay more for fuel than in Germany.

German government expresses 'great and growing' concern

But relief is in sight. That's what Chancellor Friedrich Merz (CDU) has promised.

"Many people who need their cars every day have reached their breaking point," Merz said Tuesday at an event hosted by the German Foreign Trade Association (BGA) in Berlin. "I believe we must take action."

However, the chancellor added that the "exact measures" have not yet been determined.

"We are therefore in close dialogue within the federal government and with the German states." A proposal will be announced "very soon," Merz said.

But what might that look like? On Monday (Sept. 14) in Berlin, deputy government spokesperson Steffen Meyer rejected any government responsibility for the high prices.

"It's not the actions of the federal government or anything like that causing prices to rise so sharply. Rather, it's largely due to the escalating situation in the Middle East, attacks on oil pipelines and the blockade of shipping lanes," Meyer said.

The fact is, however, that Germany imposes higher taxes and levies on fuels. The ADAC automobile club has pointed out that while the oil price remains below previous peaks, E10 gasoline is more expensive than ever before.

"From the ADAC's perspective, there is therefore a need to provide greater clarity, especially regarding refinery and wholesale markets," said an ADAC spokeswoman.

Price gouging at the pumps

Herbert Rabl of the Gas Station Interest Group (TIV) puts it more bluntly.

"They're raking it in. The oil companies aren't cutting into their profit margins at all," Rabl told the Rheinische Post newspaper.

He said that this is an issue that has long been the subject of political debate, but that the federal government remains divided on what, if anything, can be done about it.

However, the problem that the conservative bloc of Christian Democratic Union/Christian Social Union (CDU/CSU) and the center-left Social Democratic Party (SPD) face as coalition partners is that the state coffers are empty, and the federal government cannot cover its budget shortfall without taking on a historically high level of new debt.

"Ultimately, the only way to bring these prices down is to end the hostilities and ensure the freedom of navigation," said spokesperson Meyer.

A new fuel rebate or tax relief?

Faced with rising oil prices that followed the outbreak of the war on Iran, the German government introduced a fuel rebate in the spring. From May 1 through June 30, 2026, the energy tax on gasoline and diesel was temporarily reduced. Factoring in value-added tax, this was expected to lower fuel prices by about €0.17 per liter.

"We had a fuel rebate; we subsidized prices," Federal Economy Minister Katherina Reiche (CDU) told the n-tv network.

But she says that won't be possible again: "Together, we in the coalition have decided that we don't have the financial scope for that at the moment."

As an alternative, the Conservatives are exploring the possibility of at least providing tax relief for commuters or supporting low-income earners with direct payments.

But that's not enough for the SPD. It is proposing a completely different approach and, as it did shortly after the outbreak of the Iran war, is advocating for a government-imposed cap on fuel prices. One of the ways they plan to finance this relief is through an excess profit tax on energy companies. In addition, the SPD supports a temporary reduction in energy taxes to deal with crises. Their goal is an immediate price reduction at the gas pump.

AfD standing to profit from bickering

But while the federal government continues to debate and weigh its options amid internal disagreements, other parties feel time is running out. Regional elections will be held in two states on September 20.

In Mecklenburg-Western Pomerania, SPD Premier Manuela Schwesig is fighting to stave off a win for the far-right Alternative for Germany (AfD). In the latest polls, the AfD was in the lead with 38%, while the SPD has recently gained ground, and is now polling at 34%.

The AfD wants to drastically lower fuel prices by abolishing the CO₂ tax on fossil fuels and reducing the energy tax to the European minimum. It also proposes lowering the German value-added tax on gasoline and diesel from 19% to 7%.

"There is the option of introducing a fuel cap and, at the same time, an excess profit tax, as in Luxembourg," Schwesig said on Monday (Sept. 14) in Schwerin.

She criticized the federal government's inaction: "The chancellor is just allowing this to drag on, and that is causing frustration."

A solution from the EU?

According to the SPD-led Federal Finance Ministry, Minister Lars Klingbeil will "strongly push" for the introduction of an excess profits tax at a meeting of EU finance ministers in Dublin this coming Friday.

Officials in Berlin point out that an excess profits tax is currently being discussed at the European level.

"Large member states such as Spain and Poland are on our side," said a spokesperson for the Finance Ministry on Monday (Sept. 14) in Berlin.

"Such an excess profits tax would be one way to use the excessive profits that oil companies are reaping during this crisis — by fleecing consumers and imposing excessive price hikes — to provide targeted relief for the people who are particularly affected by these high gas prices," he added.