Germany’s fuel prices are high because taxes and levies make up the majority of what you pay at the pump. On a liter of petrol (Super E10), around 58% of the price goes to the state. For diesel, it is around 48%.
As of late March 2026, a liter of Super E10 costs around €2.13, and diesel runs at about €2.30. Both figures are well above the EU average (1.78 € per liter for petrol and 2.06 € per liter for diesel).
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What is the fuel cost structure in Germany?
Every liter of petrol in Germany carries three layers of state charges before the retailer adds a single cent of profit.
- Energy tax (Energiesteuer): It is a fixed amount of 65.45 cents per liter for petrol and 47.04 cents per liter for diesel.
- CO₂ levy (CO₂-Abgabe): It’s the newest addition. It was introduced in 2021 under the Fuel Emissions Trading Act (Brennstoffemissionshandelsgesetz, or BEHG). It charges companies for every tonne of CO₂ their fuel produces. In 2025, the CO2 levy was €55 per tonne. This translates to 15.7 cents per liter of petrol and 18 cents per liter of diesel (including VAT). From 2026, the rate is set by auction within a corridor of €55 to €65 per tonne.
- VAT (MwSt): Germany applies the standard 19% VAT on the total fuel price. This creates a “tax-on-tax” effect. On a liter costing around €1.94, the VAT alone is 31 cents.
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This means that if you pay €2.17 per liter for Super E10, €1.12 of that is tax. Without any taxes, the same liter would cost you only 82 cents.
How does Germany compare to the rest of Europe?
Germany’s fuel is 20% above the EU average. According to Eurostat data from March 2026, petrol in Germany is €2.13/L, which is 19.8% above the EU average of €1.78/L.
The most expensive country in Europe is the Netherlands (€2.35/L), followed by Denmark and Germany. Bulgaria (€1.33/L) and Malta (€1.34/L) are among the cheapest.
Countries like Luxembourg, Poland, Czechia, and Austria have noticeably lower pump prices. If you live near a border, you can save up to 50 cents per liter by fueling in these countries.
Why did fuel prices rise so sharply in early 2026?
Since late February 2026, petrol prices in Germany rose by around 25 cents and diesel by up to 44 cents per liter. Germany saw fuel rise roughly twice as fast as the EU average during this period.
The trigger was a major escalation in the Middle East conflict, which led Iran to block the Strait of Hormuz. The Strait of Hormuz is one of the world’s most critical oil shipping routes. Crude oil prices surged as a result.
Germany’s high fixed taxes amplify this effect. When the raw product price rises, the percentage-based VAT layer rises with it.
A second factor is market structure. Germany’s fuel retail market is dominated by a small number of large companies (BP/Aral, Shell, TotalEnergies, and ExxonMobil/Esso). The Monopolies Commission (Monopolkommission) has flagged this concentration as a factor that limits price competition.
Will the fuel prices come down in Germany?
Probably not significantly in the near term. Global energy market uncertainty remains high.
The CO₂ levy will continue rising year by year. The energy tax has not been cut for 20 years despite political pressure.
There have been calls in the Bundestag to temporarily suspend the energy tax or pause the CO₂ levy. In 2022, the government cut both taxes for three months during the energy crisis (the Tankrabatt), saving drivers around 30 to 35 cents per liter.
Whether a similar measure returns depends on how long the geopolitical situation remains unstable.
What can you do to pay less at the gas station in Germany?
- Tank at the right time. According to an ADAC analysis, fuel is most expensive early in the morning (around 7 AM) and cheapest in the evening between 19:00 and 22:00. Choosing the right time can save up to 13 cents per liter.
- Use a price comparison app. Apps like Clever Tanken and mehr-tanken show you the cheapest stations near you in real time. The German government’s Market Transparency Unit (Markttransparenzstelle) requires all stations to report price changes within minutes.
- Fill up before the motorway entry, not on it. Autobahn stations charge a significant premium. Exit the motorway, find a nearby town station, and rejoin.
- If you are near a border, consider crossing. Luxembourg, Poland, and the Czech Republic offer much lower fuel prices. Factor in the round-trip distance when calculating the savings.
