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Merz Promises Quick Fuel Relief as German Pump Prices Reach New Highs

A government proposal is expected soon with regulators reporting enough time to refill gas stores before winter.

Overview

  • Chancellor Friedrich Merz said Tuesday at a BGA event that the federal government will present measures very soon to ease high fuel costs but did not specify which tool it will use.
  • Fuel is at record levels: the ADAC reported a national daily average of about €2.286 per liter for E10 and €2.412 per liter for diesel, increasing pressure on commuters, small businesses and farmers.
  • Lawmakers and ministers are debating a narrow set of options — a price cap, an EU-level over‑profit tax, a repeat of the spring's tankrabatt, or targeted direct payments — each option carries legal, fiscal or distributional limits.
  • Regulators say the immediate gas supply risk is manageable because about 136 TWh (roughly 55% full) are in storage and LNG terminals plus pipelines can still import more gas before winter.
  • Political fallout is mounting for Merz as he seeks CDU backing at a presidium meeting Sunday and faces party unrest after recent regional defeats, which makes a prompt, legally defensible relief package politically urgent.