Merz Pledges Relief as German Fuel Prices Soar

Fuel prices in Germany have reached levels that are pushing drivers to their limits. On September 15, E10 gasoline in Berlin cost approximately 2.25 euros per liter in the morning, rising by around 20 cents at noon under a rule permitting one daily price increase. At a highway station in southern Berlin, Super Plus reached 3.03 euros per liter. German law currently allows fuel stations to raise prices once per day at noon.

Germany Is the Most Expensive in Its Region

Germany has nine neighboring countries. In seven of them, petrol is significantly cheaper; for diesel it is six. Only the Netherlands and Denmark charge drivers more. According to the Federal Statistical Office, filling a 60-liter tank with E10 on September 7 cost around 31 euros less in the Czech Republic and Poland than in Germany. Luxembourg was 28 euros cheaper, Austria 25 euros cheaper.

Chancellor Friedrich Merz (CDU) said at an event organized by the foreign trade association BGA in Berlin on Tuesday: "For many people who need a car every day, a burden limit has been reached. I believe we must act." He added that the exact instruments were not yet determined but that a proposal would come "very soon."

Government Blames Global Markets

Deputy government spokesman Steffen Meyer on Monday attributed the high prices to global market conditions — the escalating situation in the Middle East, attacks on oil pipelines, and blockades of sea routes — rather than government decisions. The ADAC automobile club noted that while the oil price remains below previous peak levels, E10 gasoline is now at its most expensive ever, and called for further explanations from refineries and wholesalers.

Herbert Rabl of the fuel station interest association TIV was blunter: "They're raking in money. Mineral oil companies aren't reducing their margins at all," he told the Rheinische Post.

Coalition Split on Solutions

The governing CDU/CSU and SPD coalition faces tight finances. The government introduced a temporary fuel tax cut from May 1 to June 30, 2026 — worth roughly 17 cents per liter including VAT — in response to rising prices after the outbreak of the Iran war. Economy Minister Katherina Reiche (CDU) ruled out a second such subsidy, citing a lack of fiscal room.

The CDU/CSU is considering tax relief for commuters or direct payments to low earners. The SPD is pushing for a state fuel price cap and an excess-profit windfall tax on energy companies. Bavarian Premier Markus Söder (CSU) supports a windfall tax but also wants a review of taxes and fees. The coalition has yet to agree on a joint approach, though Merz promised a proposal in the very near future.