Full Breakdown
Germany Grapples with Record Fuel Prices Amid Coalition Tensions
By Drooid · · How we work
Record Fuel Prices and Immediate Impact
On the morning of September 15, E10 gasoline in Berlin sold for about €2.25 per litre and diesel for €2.37. Prices rose by roughly €0.20 at the mandated noon update, and a highway station in southern Berlin recorded a peak Super Plus price of €3.03 per litre. The nationwide daily average for E10 reached €2.30 per litre on September 16, the highest level in four consecutive days. Drivers in rural areas, lacking viable public-transport alternatives, have expressed “breaking point” frustration, while neighboring countries such as the Czech Republic, Poland, Luxembourg and Austria continue to offer fuel up to €31 cheaper per 60-litre tank.
Background & Context
Germany’s coalition government—CDU/CSU and SPD—used a temporary energy-tax reduction from May 1 through June 30, 2026, projected to shave €0.17 off the pump price per litre. Federal Economy Minister Katherina Reiche described it as a “fuel rebate.” Fiscal constraints limit the coalition’s ability to repeat the rebate, prompting debate over commuter tax relief, direct payments to low-income earners, or a government-imposed price cap.
Data & Statistics
- €2.25/L (E10) and €2.37/L (diesel) on September 15 in Berlin.
- €0.20/L price increase at noon, with a peak €3.03/L for Super Plus.
- €2.30/L average E10 price on September 16, up from €2.286 the previous day.
- Cross-border gaps on September 7: €31 cheaper in the Czech Republic and Poland, €28 cheaper in Luxembourg, €25 cheaper in Austria.
Official Statements & Responses
Chancellor Friedrich Merz announced the government will act “very soon” to address “price gouging,” without detailing measures. Conservative parliamentary leader Thorsten Frei suggested lowering the gasoline sales tax to 7 % from 19 % and urged readiness by October 1.
SPD Premier Manuela Schwesig called for a combined fuel-cap and excess-profit tax, citing Luxembourg’s model, and criticized the chancellor for “dragging on.” Finance Ministry spokesperson Lars Klingbeil signalled that an excess-profits tax is under discussion at the European level, with Spain and Poland reportedly supportive.
Criticism & Opposition
The ADAD automobile club warned that, despite lower global oil prices, E10 remains the most expensive gasoline on record and urged greater market transparency. Gas-station lobbyist Herbert Rabl accused oil companies of “raking it in” without cutting profit margins. The SPD proposes a price cap modeled on Belgium and Luxembourg, while the CDU favours targeted tax relief.
Conflicting Reports & Gaps
- Merz rejects a windfall-profit tax, citing legal concerns, while the SPD and finance ministry push for an excess-profits levy.
- Proposals range from a sales-tax cut to 7 %, a direct-payment scheme, to a price-cap; no single plan has been formalised.
- The coalition’s fiscal capacity remains unclear, leaving financing mechanisms unspecified.
Verbatim Quotes
- “Many people who need their cars every day have reached their breaking point,” — Chancellor Friedrich Merz
- “They're raking it in. The oil companies aren't cutting into their profit margins at all,” — Herbert Rabl
- “There is the option of introducing a fuel cap and, at the same time, an excess profit tax, as in Luxembourg,” — Premier Manuela Schwesig
What’s Next
Regional elections are scheduled for September 20 in Mecklenburg-Western Pomerania and another state, intensifying political pressure. Officials have indicated any new tax or price-cap measure should be ready for implementation by October 1. The Federal Finance Ministry plans to advocate for an excess-profits tax at an upcoming EU finance ministers’ meeting in Dublin.