Union Workers' Wing Calls for Higher Mileage Allowance Due to Higher Fuel Prices - Germany's fuel price surge sparks calls for commuter relief and stricter regulations
Fuel prices in Germany have climbed sharply, driven by rising oil costs linked to the Middle East conflict. The surge has hit commuters hard, prompting calls for financial relief from workers who rely on their cars for daily travel. Before the recent price spike, Germany already had some of Europe's highest fuel costs. In February 2026, Superbenzin averaged €1.81 per litre, while diesel hovered between €1.75 and €1.95. These rates exceeded EU averages and neighbouring countries like Hungary (€1.51 for petrol, €1.59 for diesel) but remained below peaks seen in the Netherlands (€2.17).
The labour wings of the CDU and CSU parties have now proposed raising the tax-free mileage allowance from 30 to 38 cents per kilometre. They argue this would offer fairer compensation for employees using private vehicles for work. Additionally, they suggest a tax-free mobility supplement for workers facing high travel costs, managed by employers with minimal paperwork. To curb price volatility, the proposal includes stricter rules for petrol stations. Under the plan, stations could only increase prices once daily at noon, though reductions would be allowed at any time. Violations would result in fines. The Bundestag will debate these measures on Thursday, including tighter antitrust laws to prevent price gouging.
The proposed changes aim to ease the financial strain on commuters while stabilising fuel pricing. If approved, the adjustments to mileage allowances and price regulations would take effect in the coming months. The debate will determine whether these steps become law.
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