Economy Ministry Drafts Fuel Price Cap for 1 January 2027
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Germany's Federal Ministry for Economic Affairs has written a first draft law for the planned fuel price cap. The draft, made public on Monday 2 November, says the government could set a maximum price for petrol and diesel at public filling stations, but only "in the most extreme emergency" as a crisis tool.
The cap would not apply automatically. It could only be switched on if petrol and diesel prices in Germany rise by more than five percentage points above the average price rise in the other EU countries for three weeks in a row. The Market Transparency Unit at the Federal Cartel Office would check this every week. A cap would last for a maximum of three months and could be suspended if fuel supply is at risk. The federal states could set their own higher or lower maximum prices, even for single districts.
The draft names no fixed price per litre, and the formula for calculating the maximum price is still missing. Filling stations that break the rules would face fines of up to 100,000 euros. The draft is at a very early stage and has not yet been agreed within the government. The coalition had agreed in September to introduce a cap by 1 January 2027 at the latest. A Greenpeace transport expert said there is hardly any scenario in which the cap would actually be triggered.
What changes for you: the current fuel tax discount of about 17 cents per litre ends on Thursday 31 December 2026, and the draft rules out extending it. Unless the government decides otherwise, expect higher prices at the pump from Friday 1 January 2027, whether or not the cap comes.
What you can do: compare prices in a fuel price app before you fill up. Filling stations may raise their prices only once a day, at 12 noon, while price cuts are allowed at any time.
Sources: tagesschau.de, Handelsblatt
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