Fuel prices rise again despite tax discount

Despite the fuel tax discount, prices in Germany have risen again after an initial drop. ADAC and the Federal Cartel Office criticize that the 17-cent-per-liter tax cut is not fully passed on to consumers. Oil companies and associations dispute this.

The fuel tax discount took effect on May 1, 2026, reducing the energy tax by nearly 17 cents per liter for fuel delivered from that date. On the first day, Super E10 averaged 1.99 euros per liter nationwide, as reported by the Federal Cartel Office at 10:14 a.m. It dipped to 1.981 euros just before noon but jumped to 2.099 euros. Diesel was 2.063 euros at 11:45 a.m. and rose to 2.193 euros after noon.

By Sunday, daily average prices were only 10 to 11 cents below April 30 levels (Super E10: 2.126 euros, Diesel: 2.215 euros). The ADAC concludes: "The development is going in the wrong direction." A spokeswoman criticized: "Oil companies are raising prices again without justification from rising crude oil prices."

The Federal Cartel Office stressed the tax cut aims to relieve consumers. President Andreas Mundt said: "Oil companies are merely trustees of this relief; it is not intended for them. It must reach customers." The Federal Ministry of Finance expects pass-through and will monitor it.

The oil industry disagrees. The Fuels and Energy Association stated: "Measured against April 30 pump prices, the discount is fully passed on by branded stations." World market prices have risen due to the escalating conflict in the Persian Gulf. The bft fuel station association views price fluctuations as a "usual market phenomenon" and notes the discount's delayed effect.

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German gas station at midnight displaying reduced petrol and diesel prices after the government's 17-cent-per-litre tax cut takes effect.
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Fuel tax cut on petrol and diesel takes effect

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The German government's fuel discount took effect at midnight. Taxes on petrol and diesel drop by about 17 cents per litre for two months. It remains unclear how quickly pump prices will reflect the cut.

The escalation of the Iran war is driving up oil prices and causing noticeable increases at German gas stations. Diesel now costs an average of 2.04 euros per liter, gasoline 1.94 euros. Politicians are calling for government interventions against rising fuel costs.

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Fuel prices for diesel and Super E10 in Germany have risen further. According to the ADAC, the average diesel price yesterday was 2.425 euros per litre, surpassing the previous record by more than 10 cents. Significant increases were also made today, on Easter Sunday.

Oil firms confirmed price rollbacks effective 6 a.m. Tuesday, April 14, matching Department of Energy projections: diesel down P20.89 to P23 per liter, gasoline P4.43 to P4.50, and kerosene P8.50. The cuts end surges of over P100 on diesel since late February's Middle East crisis. President Marcos suspended excise taxes on LPG and kerosene, while a jeepney subsidy launches.

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Following last week's rollbacks, diesel prices are forecast to drop another P17 to P19 per liter and gasoline P2 to P3 per liter starting April 21, potentially taking diesel below P130, as Middle East tensions ease further with a holding ceasefire.

Oil companies raised fuel prices again on Tuesday, April 7, 2026, with diesel hikes up to P19.80 per liter. The increases stem from ongoing US-Iran tensions and global oil supply disruptions. This marks the 13th to 15th consecutive weekly rise.

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Germany's Economics Minister Katherina Reiche is considering limiting fuel price increases at gas stations to once per day, following Austria's example. The rule has been in place there for years to curb fluctuations. Viennese economists highlight benefits in transparency but warn of limited impact.

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