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Germany's fuel prices soar past €2 per litre amid Middle East tensions

Drivers in Germany face crippling costs as fuel hits €2 per litre. Will a windfall tax on energy firms ease the pain—or deepen the crisis?

The image shows a poster advertising the electric city of Bergbahn, Germany. It features pictures...
The image shows a poster advertising the electric city of Bergbahn, Germany. It features pictures of buildings, trees, hills, and text describing the city.

Germany's fuel prices soar past €2 per litre amid Middle East tensions

Fuel prices in Germany have climbed sharply, surpassing 2 euros per litre since late February 2026. The surge follows rising tensions in the Middle East and disruptions at the Strait of Hormuz, pushing costs well above those in many other EU countries. Politicians are now pressing the federal government to take action against what they call an 'outrageous' price hike. The spike in fuel costs has drawn strong criticism from regional leaders. Özlem Ünsal, Bremen's Senator for Construction, Mobility, and Urban Development, labelled the increases 'outrageous' and demanded immediate federal intervention. She argued that companies benefiting from the crisis should pay a windfall tax, similar to the one imposed during the Ukraine war.

Bremen, alongside Hamburg, North Rhine-Westphalia, and Baden-Württemberg, has formally called on the government to tackle the soaring prices. The motion highlights that nearly half of Germany's fuel price comes from taxes, making it one of the most expensive places in the world to buy petrol. In response, the federal government has pledged to tighten oversight of wholesale fuel markets and restrict price changes at petrol stations. Revenue from any windfall tax would fund public transport improvements, such as cheaper bus fares, better rail services, and expanded e-mobility options. Despite stable crude oil markets and available reserves, German fuel prices remain high due to geopolitical tensions. The Strait of Hormuz blockage has further strained supply routes, keeping costs elevated.

The federal government's proposed measures aim to stabilise fuel pricing and reinvest profits into public services. Regional leaders continue to push for stronger action, including a windfall tax on energy companies. The outcome will determine whether relief reaches drivers and commuters in the coming months.

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