The price of gasoline in Germany has hit a new all-time high, making fuel another serious risk for Europe's largest economy. The average price per liter of Super E10 gasoline has risen to EUR 2,286, according to the latest figures from the German automobile club ADAC. At some gas stations, prices are already well above this value, and Super Plus at a highway gas station in southern Berlin reached EUR 3.03 per liter.
In just one day, the average price of E10 increased from EUR 2,273 to EUR 2,286 per liter. Diesel reached an average of EUR 2.412 per liter, now only about four euro cents away from its all-time high in April.
The main factor behind the price spike remains tensions in the Middle East and disruptions to international oil supplies. International markets continue to react to the problems surrounding Saudi Arabia and the Strait of Hormuz. On Wednesday, the price of Brent fell slightly to around $107.92 per barrel after Riyadh offered additional supplies via Oman, but limited shipping traffic and uncertainty about supplies continue to keep prices high.
The first blow is on transport
The record prices are already causing real problems for German transport companies. The German freight transport and logistics association BGL reports that due to high diesel costs, some carriers are temporarily taking trucks out of traffic.
BGL Chairman Dirk Engelhardt is calling for fuel price caps similar to those in Belgium and Luxembourg, as well as special cheaper diesel for the transport sector.
This is particularly important for the German economy, because road freight transport is the basis for deliveries to industry, trade and construction. If fuel costs remain high for a prolonged period, carriers will inevitably try to pass on at least some of them to their customers. This increases the risk that more expensive diesel will gradually affect the prices of goods.
Business warns of pressure on the entire economy
The German Chamber of Industry and Commerce (DIHK) is already warning that the new energy surge could become a significant burden on the German economy. The organization is calling on the government to consider reducing energy taxes to the minimum level allowed in the European Union.
New data from the German statistics office Destatis shows that the pressure is already spreading beyond gas stations. Wholesale prices in August were 6.8% higher than a year earlier – the strongest annual growth since February 2023. Compared to July alone, the increase is 0.9%.
The prices of fuels and related energy products are particularly indicative. According to Destatis, the conflict in Iran and the Middle East is among the main reasons for the acceleration of wholesale prices, with solid, liquid and gaseous fuels and related products increasing in price by 35.1% on an annual basis.
This increases the risk that high gasoline and diesel prices will turn from a problem for motorists into a broader inflationary factor.
Less money for consumption
The other direct consequence is on household budgets. At a price of EUR 2,286 per liter, filling a 60-liter tank with E10 costs around EUR 137.
In border regions, the difference with other countries is already significant. According to data from the German Statistical Office, cited by Deutsche Welle in the last 24 hours, filling a 60-liter tank cost approximately EUR 31 less in Poland and the Czech Republic, EUR 28 less in Luxembourg and around EUR 25 less in Austria.
For households in large cities, part of the effect can be offset by public transport, but the situation is different in rural areas, where the car often has no real alternative. That's where rising fuel prices directly reduce disposable income for other purchases and services.
A prolonged price shock could weaken private consumption - an important component of Germany's economic activity.
Inflation risk returns
The record fuel prices come at a time when manufacturers, traders and households are already feeling the effects of more expensive energy. The latest wholesale price data shows that the energy shock is gradually being transmitted along the supply chain.
This creates a classic risk for the German economy: transport becomes more expensive, companies pay more for supplies and raw materials, some of the costs are passed on to final prices, and households' purchasing power shrinks.
For an export-oriented industrial economy like Germany, high energy and transport costs also pose an additional problem - worsening price competitiveness compared to producers in countries with cheaper energy.
Berlin seeks urgent measures
The record has already forced the German government to discuss options for reducing the burden. Chancellor Friedrich Merz said that the cabinet would soon present proposals and that taxes and levies on fuel would be considered.
Among the options discussed is a reduction in VAT on gasoline from 19% to 7%, as well as a reduction in energy tax. The proposal was supported by Torsten Frei, one of Merz's close allies, who insisted that the measures be considered quickly.
However, the Ministry of Economics is skeptical about the introduction of an administrative price cap and a special tax on the extraordinary profits of oil companies. According to the ministry, the German market is too large and structurally different to directly apply the Luxembourg model.
Thus, the record price of gasoline is now turning from a problem for drivers into a macroeconomic risk. If oil prices remain high, Germany could face higher transport costs, rising production costs, additional inflationary pressure and weaker consumption - all at the same time. a combination that would make it difficult for the economy to recover.