Germany Faces Record Fuel Prices Amid 2026 Iran Conflict

Germany is experiencing unprecedented diesel and petrol price hikes as the ongoing conflict in Iran continues to disrupt global oil supply chains. On April 2, 2026, diesel prices hit a record 2.346 euros per liter, surpassing previous all-time highs, and Super E10 petrol reached 2.141 euros per liter, marking the highest levels this year. Average current prices stand at approximately 2.41 euros for diesel and 2.23 euros for petrol, significantly up from 1.75 euros and 1.83 euros respectively before the conflict escalated.

The surge is largely attributed to the Iran conflict, which threatens the critical Strait of Hormuz—a maritime route for nearly 20-30% of global crude oil shipments. Consequently, Brent crude oil prices have soared from around $72 to over $120 per barrel since late February 2026.

In an attempt to stabilize the market, Germany has released oil reserves, aiming to ease price pressures while new regulations restrict fuel price increases to once daily at noon to curb volatility. Despite these efforts, prices continue to rise, with experts noting that oil companies are preemptively pricing in further risks. The Federal Cartel Office is actively monitoring fuel prices to prevent unjustified hikes.

Fuel price increases have sparked consumer behavior changes, with many German drivers crossing into Poland where fuel prices are capped and taxes have been reduced, making petrol about 60 cents cheaper per liter. This has led to long queues at Polish stations and a potential risk to local supply, prompting the Polish government to consider restricting fuel sales to foreigners if necessary.

Within Germany, political debate intensifies on how to address the crisis. The ADAC recommends temporarily lowering the energy tax by 15 cents per liter to the EU minimum to provide relief. Berlin’s mayor, Kai Wegner (CDU), advocates for price caps akin to Poland’s and suspending the CO₂ tax. Conversely, SPD leader Lars Klingbeil suggests flexible price caps linked to crude oil prices, while the Greens promote consumption reduction measures, including a temporary highway speed limit—currently a contentious issue as Germany remains the only European country without such a limit.

These developments highlight the complex challenges Germany faces amid geopolitical tensions affecting global energy markets, with consumers and policymakers seeking effective solutions as fuel prices remain elevated.