Overview
- The ADAC reported on Wednesday that average retail prices hit new records with Super E10 at about €2.30 per litre and diesel around €2.422 per litre, a sharp rise since the spring.
- Market participants and officials link the spike to tightened oil and gas flows from the Iran‑region conflict, attacks on pipelines and shipping routes and higher crude prices that raised refinery and wholesale costs.
- Parties and ministers are debating multiple relief options — the CDU wants a temporary VAT cut to 7 percent from October 1, the SPD backs an over‑profit levy and the Greens favour social payments — but the coalition has not reached a decision.
- The Economy Ministry warned that price caps and an over‑profit tax carry legal and market risks, while Minister Katherina Reiche is expanding Long Term Options and pressing state and commercial traders to help lift gas storage levels that are about 56 percent full.
- Households and businesses are feeling the strain as heating oil and diesel jumped year‑on‑year and practical limits complicate targeted aid because only about 19 percent of taxpayers have IBANs registered for fast direct payouts, risking higher winter bills if storage and procurement fall short.