Market
German draft turns fuel price cap into an emergency brake with a high bar
A first German draft law makes a maximum fuel price an emergency brake for exceptional situations, not a permanent cap like those in Belgium and Luxembourg. The tax cut of about 17 cents per litre expires at the end of December, and the draft rules out a new one.
Germany's economy and energy ministry under Katherina Reiche (CDU) has produced a first draft of a Kraftstoffhöchstpreisgesetz, a law on maximum fuel prices, ZDFheute and the dpa news agency report. It is still in early coordination within the government.
A high bar
A cap would only be allowed if, for three weeks in a row, the weekly rise in petrol or diesel prices in Germany exceeds the average rise elsewhere in the EU by more than five percentage points. It would last three months at most.
The Markttransparenzstelle, the unit of the competition authority Bundeskartellamt that collects fuel prices, would check this every week against the prices before tax that the European Commission publishes. Even if the conditions are met, the government need not act. The federal states may set regional caps, down to postcode level, or suspend the cap if supply is at risk.
Tax cut ends in December
In September, the federal government aimed for a cap on the Belgian or Luxembourg model by 1 January 2027. From October to the end of 2026, energy tax on petrol and diesel is 14 cents per litre lower, 17 cents with VAT. The draft rules out a new cut, citing the tight budget.
The German motoring club ADAC expects a cap to lower average daily prices slightly at most, though it could curb spikes and excessive margins. With the formula left to a later regulation, ADAC calls a 1 January start uncertain.
Without a new decision, tax in Germany rises by about 17 cents per litre on 1 January, and the emergency brake does not offset that. At equal market prices, filling up there is cheaper before 1 January than after. Your choice of station still makes a big difference.
