German fuel prices jump sharply as tax cut nears end, cartel office issues warning
Diesel and petrol prices in Germany surged at midday Tuesday, just hours before a temporary fuel tax cut expires, prompting criticism from the ADAC and a warning from the cartel office over unjustified increases.
Sharp midday jump as rebate expiry looms
On Tuesday, German fuel prices saw one of their largest ever single-day jumps, rising 24 cents per litre for diesel and 20.3 cents for E10 super petrol around midday, according to ADAC figures. The increases, permitted only at noon under Germany's pricing regulation, came on the final day of a temporary tax reduction that has cut fuel levies by 16.7 cents per litre since early May. By 12:15 p.m., E10 was 3.3 cents per litre more expensive than at the same time on Monday, while diesel was 3.5 cents higher.
Six consecutive price rises despite falling crude
The sharp midday move extends a trend of rising prices observed over the past week. Monday's national daily average for E10 reached €1.861 per litre, up 1.6 cents from Sunday, while diesel climbed 1.9 cents to €1.784 – the sixth consecutive daily increase. Since last Tuesday, E10 has risen by 4.4 cents and diesel by 5.3 cents per litre, even as crude oil prices have eased over the same period.
- Temporary fuel tax cut of 16.7 cents per litre comes into effect
- Six-day streak of daily fuel price increases begins, despite falling crude oil prices
- Midday price surge: diesel +24 cents, E10 +20.3 cents per litre; queues at petrol stations
- Tax cut expires; another sharp price increase expected at Wednesday noon
ADAC calls increase unjustified
The ADAC criticised the latest price moves, linking them to the imminent return of full taxation.
The current increase in fuel prices is not justified from ADAC's perspective. The crude oil price is not currently rising. Therefore, the ADAC's suspicion is confirmed that the mineral oil companies are already pricing in the upcoming tax increase before the end of the fuel rebate.
Cartel office warns against excessive price hikes
Andreas Mundt, president of the Bundeskartellamt, warned oil companies against exploiting the situation.
He added that the tax reduction had not been fully passed on to consumers, though he declined to quantify the shortfall. The Monopolkommission and the Ifo Institute have also concluded that the transfer was incomplete, particularly for diesel, while industry bodies bft and en2x have dismissed such findings as populism or denied excessive pricing.Companies must not use the situation to make price increases that are not objectively justified. We will consistently follow up on any indications of such behaviour.
Queues at stations and unusual price dispersion
Motorists rushed to fill their tanks before the midday increase, leading to queues at some stations by late morning. The size of the noon price jump varied unusually widely across Germany, with some stations seeing only moderate rises while others posted far larger increases. Under the noon rule, prices typically fall during the morning to their lowest daily level, attracting bargain-seeking drivers.
Wednesday expected to bring another record jump
With the tax cut expiring at midnight, Wednesday's noon window is expected to deliver an even larger price spike, combining the usual midday adjustment with the restoration of the full tax rate. Whether prices will follow the recent pattern of falling in the morning before the jump remains uncertain, given that Tuesday's afternoon decline was slower than in prior weeks.
