Why is petrol more expensive in Germany than most places in the EU?
The escalation of the war in Iran has driven up fuel prices across Europe, but Germany has felt it harder than most other countries: Gasoline has risen almost 5% in recent weeks, well above the EU average.
The contrast with the neighbors is striking. France and Austria saw increases of around 2%, Estonia 3.6%, Luxembourg 3.5%, while Slovakia and Hungary saw increases of just 0.1%.
The European Commission, which publishes weekly data in its Oil Bulletin, reported particularly strong increases in Germany, the Netherlands, Denmark and Finland.
Dutch drivers currently pay the highest petrol price in Europe, averaging €2.17 per liter last week.
Germany follows closely at €2.08, while Finland is also in the higher range, particularly for its expensive diesel and gasoline.
The biggest difference is in national tax and duty structures.
Germany traditionally levies higher energy taxes on fossil fuels, both for environmental reasons and to finance infrastructure, while also charging for CO2 consumption, which fuels overall costs.
The result is that Germans automatically pay more when prices rise.
In many other European countries, VAT, oil and CO2 levies are structurally lower.
The recent rise nevertheless seemed disproportionate to the German government, which set up a coalition working group to examine lessons to be learned from EU partners.
Some countries have already acted. Both Croatia and Hungary have introduced price ceilings at gas stations.
In Croatia, prices initially increased by around four cents per liter, but the cap will limit further increases and set prices at €1.50 per liter from March 23.
In Hungary, gasoline is capped at €1.51 and diesel at €1.59, but the measure only applies to residents, meaning tourists with foreign license plates will pay more.
In Austria, a different price rule applies: gas stations are only allowed to increase their prices once a day, at midday. However, reductions are possible at any time.
This makes the situation clearer and more transparent, but it is questionable whether this will actually lead to lower gas prices.
Economy Minister Katherina Reiche criticized fuel prices that rise quickly due to the high cost of raw materials and then only fall slowly, saying the government wants to “break this mechanism.”
She proposed limiting gas stations to one price increase per day.
Driving a car is part of everyday life for most Germans when they travel, go shopping or go to school. The pressure on the government to act has therefore increased.
