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German Fuel Prices Climb Above €2 Per Liter

The spike follows the end of a temporary July rebate; refinery exports to Asia and unusually large refinery markups have tightened domestic supply and left prices exposed to planned CO₂ levy rises and a January 2027 minimum-wage increase.

Overview

  • Pump prices for E10 and diesel have passed €2 per liter, with reported averages around €2.15 for E10 and €2.20 for diesel.
  • The immediate jump followed the expiration of the government’s temporary ‘Tankrabatt’ on July 1, which removed roughly €0.17 per liter for petrol and a larger cut for diesel.
  • Refinery behavior has amplified the rise: since March refineries have sent more fuel to under-supplied Asian markets and are applying unusually large margins that have boosted wholesale and retail prices.
  • Local transport firms report concrete pain from higher diesel costs, citing about €15 extra per 100 km and roughly €60–75 added per 400–500 km trip while contractual pass-throughs to customers lag.
  • Policy drivers will sustain pressure on pump prices because a large share of retail costs are taxes and levies, and scheduled CO₂ levy increases plus the January 2027 minimum-wage rise are expected to add further costs for businesses and consumers.