Apr 13, 2026, 10:16 amApr 13, 2026, 10:16 am
Germany’s government is planning to ease the burden on drivers in view of the high fuel prices.
To this end, the energy tax on diesel and gasoline is to be reduced by around 17 cents gross per liter for a limited period of two months, as the parties in the coalition of Christian and Social Democrats in Berlin announced.
Chancellor Friedrich Merz said that this should improve the situation for drivers and businesses very quickly. The government expects the petroleum industry to pass on the relief. According to Labor Minister Bärbel Bas, consumers and the economy should receive a total of around 1.6 billion euros (around 1.48 billion francs) in fuel price relief.
Tobacco tax should increase instead
The coalition of the Christian Democratic Union (CDU and CSU) and the social democratic SPD also wants to enable employers to pay a tax- and duty-free relief bonus of 1,000 euros in 2026. To counter-finance the shortfall in tax revenue, the tobacco tax is to be increased as early as 2026.
In this context, the coalition welcomed the European Commission’s announcement that it would examine measures towards the petroleum industry in line with the EU energy crisis contribution in 2022. What this means is an excess profits tax. The counter-financing of the tax relief should take place through antitrust or tax law-protected measures against the oil companies.
The coalition leaders discussed the energy price crisis and upcoming reform projects in the Berlin Villa Borsig until the night. Negotiations ran throughout the weekend.
Fuel prices rose sharply
Since the outbreak of the Iran War, fuel prices have risen extremely sharply. Since the war began on February 28 with US-Israeli attacks on Iran, Tehran has blocked the Strait of Hormuz off its coast, which is important for oil transport. The passage of ships practically came to a standstill.
At its previous peak shortly after Easter, a liter of diesel was a good 70 cents more expensive on a daily average across Germany than before the start of the war, and a liter of Super E10 was a good 41 cents more expensive, as figures from the General German Automobile Club (ADAC) show. The government’s first measures – the 12 o’clock rule, according to which prices can only be increased once a day, and additional powers for the Federal Cartel Office – initially had no significant effect.
Recently, prices had fallen somewhat again because the price of oil had fallen significantly in the meantime. However, oil prices, which have recently risen again following the failed negotiations between the USA and Iran, are likely to have an impact in the other direction.
On Saturday, a liter of E10 premium gasoline cost a daily average of 2,101 euros across Germany, and a liter of diesel cost 2,301 euros, according to the figures. These were both slight decreases compared to Friday. Figures for Sunday are expected later this morning. By midday on Sunday, fuel prices had risen significantly again. Between 11:45 a.m. and 12:15 p.m., diesel rose in price by 9.7 cents to 2,364 euros per liter, Super E10 by 9.3 cents to 2,164 euros, as the ADAC reports.
Dispute in coalition
Before the weekend, the dispute within the coalition over relief for consumers had intensified in view of the high fuel prices. While Vice Chancellor and Finance Minister Lars Klingbeil (SPD) met representatives of trade unions and employers, Economics Minister Katherina Reiche (CDU) attacked him sharply. Merz (CDU) called for restraint. (sda/dpa)