Iran Conflict Keeps Fuel Prices Elevated in Germany Despite Recent Declines

Fuel prices in Germany have seen a slight decrease since the recent ceasefire in the Iran war but remain significantly higher than pre-conflict levels, reflecting ongoing market instability tied to the Middle Eastern crisis. As of May 7, 2026, the average price for both Super gasoline and diesel is around 2.06 euros per liter, down from previous peaks but still above the 1.83 euros for Super and 1.75 euros for diesel noted before the conflict began. The disruption of the strategic Strait of Hormuz by the Iran war has been a major driver behind increased oil prices globally, affecting Germany's domestic fuel costs.

To mitigate these price surges, the German Federal Ministry for Economic Affairs has released oil reserves, as mandated by law, aiming to stabilize the market. Moreover, a temporary fuel discount of 17 cents per liter has been in effect since May 1, 2026, achieved through a two-month fuel tax reduction. Alongside this, a regulation restricting gas stations to only one daily price hike was introduced to limit price volatility, although some stations have reportedly violated this rule. Diesel prices remain higher than gasoline, partly due to Germany's heavy import reliance and diesel's prominent use in industry, which also pushes heating oil costs upwards.

Despite these measures, market experts remain cautious. Dilin Wu, Research Strategist at the Pepperstone Group, warns against premature optimism about market recovery. Wu highlights that supply restoration is complex and slow, requiring rerouting of stranded vessels and recalibrating insurance markets. Furthermore, oil production volumes cut during the crisis cannot be rapidly increased again, indicating prolonged tension in supply dynamics. The Bundeskartellamt continues to monitor the market closely for anti-competitive practices amidst these price shifts.