Germany caps fuel price hikes as Iran conflict drives costs to record highs
Germany's Bundestag has approved emergency measures to stabilise fuel prices amid soaring costs linked to the Iran conflict. The new rules, backed by the CDU/CSU, SPD, and Greens, will restrict how often gas stations can adjust prices. Officials hope the changes will bring more transparency and ease pressure on drivers before Easter. The conflict in Iran, now in its fourth week, has pushed German fuel prices to record levels. Superbenzin reached 179.4 cents per litre in 2024, while Diesel hit 216.2 cents in March 2026. Rising CO₂ taxes—climbing to 55 € per tonne in 2025—have added to the burden, placing Germany among the EU's most expensive markets for fuel.
Under the new law, gas stations can increase prices only once daily, at noon. Price cuts, however, remain unrestricted. Violations may result in fines of up to €100,000. The Federal Cartel Office will also gain stronger powers to tackle excessive pricing. Economic Affairs Minister Katherina Reiche (CDU) hinted at further relief, including a possible temporary rise in the commuter tax allowance. CSU leader Markus Söder has pushed for this change, arguing it would help millions of workers. Meanwhile, the government is exploring a broader cut to the electricity tax for all consumers.
The regulations aim to curb sudden price spikes and improve fairness at the pump. If implemented before Easter, they could provide short-term relief for drivers. The coalition's broader tax proposals may offer additional support in the coming months.
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