Just like in the Netherlands, fuel prices in Germany are at record highs. In the Netherlands, the government has not yet intervened, but across the border, it has. The German government and federal states have agreed on a plan to lower prices at the pump.
The excise duty on diesel and gasoline will be reduced by 17 cents per liter in Germany. There will also be a maximum price for fuel. This was learned by the German news agency DPA from government circles.
The German newspaper Bild already reported on Friday that such a package was in the works. The measures follow recent sharp increases in prices at the pump due to the situation in the Middle East. This has driven prices, as in the Netherlands, to record highs.
Record Prices
The price of a liter of diesel in Germany is at a record high of 2.471 euros. The gasoline price reached a record earlier this week but is now slightly lower at 2.308 euros per liter.
In the Netherlands, prices are even higher: the recommended price for a liter of gasoline is 2.712 euros per liter, almost the highest level ever.
The diesel price stands at 2.814 euros per liter. According to UnitedConsumers, another cent will be added tomorrow, breaking the record from April. In the Netherlands, there are currently no plans to do anything about prices at the pump.
Belgium and Luxembourg
From early May to the end of June this year, there was also a fuel discount of 17 cents on gasoline and diesel in Germany. It is unclear when the reduction will take effect this time. According to Bild, it could be as early as October 1.
Something has been said about how long the measure will remain in effect: until the end of this year. The German federal states must contribute financially to make the discount possible.
Much remains unclear about the introduction of a price ceiling. The German government wants to follow the example of Belgium and Luxembourg, where such a maximum price already exists.
Price Ceiling
With a price ceiling for fuel, gasoline and diesel prices may not rise beyond a certain maximum. When determining that maximum price, factors such as oil prices and costs for transport and distribution are taken into account.
The SPD has long advocated for a price ceiling. The German Minister of Economic Affairs, Katherina Reiche (CDU), had so far not been in favor. According to information from the newspaper Bild, the maximum price for fuel will now be introduced and is expected to take effect no later than January 1.
Chiem Balduk, Germany Correspondent
"Chancellor Merz was previously cautious about intervening in the high prices at the pump. The financial room in the budget was limited, and he believed that the rising prices due to international uncertainty in the world could not be subsidized. But under pressure from recent price increases, Merz's declining popularity, and the state elections next Sunday, the chancellor relented.
It was striking that he already announced government intervention this week without a plan in place. His own party wanted to reduce VAT on fuel, but coalition partner SPD reacted skeptically because it was questionable whether gas station owners would pass the savings on to consumers. They therefore advocated an extra windfall tax on oil companies, which the CDU opposed. But under pressure, everything becomes fluid, and suddenly there is a deal."