Fuel prices in Germany rise significantly again – Federal government plans no new relief measures

How expensive is fuel currently?

For both fuels, prices have now risen for eight consecutive days. On Monday morning, however, the development in fuel prices calmed down somewhat. At 10:00 a.m., both diesel and E10 were minimally cheaper than at the same time on Sunday. Nevertheless, the gap to the previous annual highs remains small: currently, it is only four cents less than the previous annual high recorded on April 6.

The ADAC cites the significantly higher oil price since the beginning of the month as the main driver of this development. Federal government spokesperson Stefan Kornelius pointed to fluctuations in fuel prices depending on the situation in the Iran war and the Strait of Hormuz, which is important for merchant shipping. "Ursache sei vor allem die erneute Eskalation im Iran-Krieg."

Government sees no need for action

Despite fuel prices having risen sharply over the past two weeks, the federal government currently plans no new relief measures for drivers. Government spokesperson Kornelius stated: "Man habe Entlastungsmaßnahmen beendet, und momentan sehe man keine neuen Maßnahmen." He also announced: "Die Bundesregierung werde die Lage genau beobachten. Momentan gebe es aber keine Notwendigkeit für neue Entlastungen." With regard to the geopolitical situation, he added: "Damit werde man noch eine Weile leben müssen."

The so-called fuel discount had come into force at the beginning of May and expired at the end of June. It had reduced the tax on gasoline and diesel by around 17 cents per liter. The fuel discount of 16.7 cents per liter cost the federal government an estimated 1.6 billion euros, according to an estimate by the Finance Ministry. During the measure's period of validity, prices had fallen significantly: at the end of June, they had – also due to a temporary easing in the Middle East – reached a level similar to that before the start of the Iran war, and diesel had temporarily cost less than 1.80 euros per liter again.

The fuel discount and its consequences

However, diesel is still far from its previous all-time high: on April 7, the fuel had cost an average of 2.447 euros nationwide. The ADAC also pointed out that current E10 price records could be imminent if the trend continues.

Nevertheless, in the political debate, calls for new relief measures are being voiced. Above all within the SPD, there are demands to introduce a fuel price cap. Representatives of the federal government and the coalition factions have, however, made clear that, given the costs, there will be no new version of the fuel discount. In addition, the Bundestag and Bundesrat have also passed the relief premium, which is, however, designed more broadly than a pure fuel price support.

Debate over new relief measures

Economists view the previous form of relief critically. Clemens Fuest from the ifo Institute for Economic Research stated: "Eine Entlastung wie durch den Tankrabatt müsse künftig eher denen mit niedrigem Einkommen zugutekommen" – that is, more targeted rather than as a flat discount on fuel.

The federal government would monitor the situation closely, it was said from Berlin. For the time being, however, according to the clear message from the government spokesperson's office, drivers will have to live with the higher prices.