Germany Faces High Diesel Prices Despite Having Europe’s Lowest Net Diesel Cost

Diesel prices in Germany remain significantly higher than in many European Union countries, with motorists paying between 50 and 70 cents more per liter due primarily to taxes and regulations. According to a recent study commissioned by the oil industry association EN2X, Germany actually has the lowest net diesel prices in the EU when state-imposed taxes and levies are removed. The report reveals that about 60% of petrol prices and roughly half of diesel prices in Germany are attributable to taxes and regulatory costs, including the CO2 tax and stringent implementation of the EU renewable energy directive.

Finance Minister Lars Klingbeil has placed blame on oil companies for profiting amid the crisis and advocates for a "Übergewinnsteuer" (windfall tax) to redistribute excess gains and provide relief to consumers. This call for a windfall tax has support from finance ministers in several other European countries who argue that previous measures failed to adequately reduce fuel prices.

The study highlights that from May to August 2026, the average diesel price in Germany was 2.23 euros per liter, but only 0.95 euros of that figure consisted of the base price before taxes. Dissatisfaction with governmental inaction has spurred calls for direct measures such as implementing a fuel price cap, like Croatia's, and utilizing increased VAT revenues from high fuel prices to financially support drivers.

Germany’s situation underscores the significant impact of taxation and regulatory policies on consumer fuel prices amid rising energy costs in 2026.