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Germany's energy crisis deepens as fuel prices surge and poverty spreads in the east

A perfect storm of policy failures and global tensions is pushing fuel prices to record highs. Eastern Germany bears the brunt as poverty and inflation spiral out of control.

The image shows a graph depicting the primary energy consumption by fuel in the reference case from...
The image shows a graph depicting the primary energy consumption by fuel in the reference case from 1980-2040. The graph is divided into four sections, each representing a different fuel source, and each section is further divided into percentages. The text accompanying the graph provides further information about the data.

BSW accuses federal government of inadequate preparation for fuel and gas price hike - Germany's energy crisis deepens as fuel prices surge and poverty spreads in the east

The Sahra Wagenknecht Alliance (BSW) in Saxony's state parliament has criticised the federal government for failing to tackle soaring fuel and gas prices. Party leader Ronny Kupke warned that current energy policies and foreign decisions are worsening poverty, particularly in eastern Germany. He described the situation as a result of 'rudderless' planning and deepening social divides.

Diesel prices in Germany have climbed sharply since 2020, hitting 174 euro cents per litre by February 24, 2026. A key factor was the CO₂ tax increase on January 1, 2025, rather than direct effects from recent US-Israel-Iran tensions. However, the latest military clashes involving Iran have pushed fuel costs even higher in recent days.

Kupke blamed the government's lack of preparation, calling its approach a 'reckless hope for the best.' Officials had assumed a mild winter and spring, leaving gas storage facilities only about 20 percent full. He also tied supply shortages to the EU's decision to halt Russian gas imports after the Ukraine war.

Inflation has risen more steeply in eastern Germany than in the west, according to Kupke. He argued that the current energy crisis is hitting the region hardest, with fuel costs deepening financial strain on households.

The BSW's warnings highlight concerns over energy security and rising living costs. With gas reserves low and prices climbing, the alliance has called for urgent policy changes. Eastern Germany faces particular pressure as inflation and fuel expenses continue to grow.

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