Germany fuel prices: E10 drops below 2 euros amid price cap debates

Fuel prices in Germany are showing a downward trend, with Super E10 gasoline recently dropping below the 2 euro per liter mark during morning hours. According to ADAC data, this decline is largely attributed to falling global oil prices. While gasoline prices have decreased, diesel prices remain significantly higher, maintaining a gap of approximately 22 cents per liter.

The Federal Ministry for Economic Affairs has submitted a preliminary draft for a fuel price cap intended to take effect in January 2027. The proposal includes several conditions and exceptions, such as only activating if prices exceed EU averages for three consecutive weeks. The measure is intended to be temporary, lasting for three months, to protect consumers without disrupting market supply.

In North Rhine-Westphalia, the recent tax cuts on diesel and gasoline are estimated to have caused a 400 million euro deficit in the state budget for the current year. Meanwhile, the German government is also exploring the introduction of E20 biofuel, which contains up to 20 percent bioethanol, as a potential measure to reduce CO2 emissions from existing vehicle fleets.