Bonn, January 8, 2026 — The German competition authority said fuel prices rose sharply around the turn of the year, driven primarily by higher carbon pricing and changes to emissions-related obligations, while warning that cost increases do not justify uniform price hikes across the sector.
In a year-end fuel market report published by the Bundeskartellamt’s Market Transparency Unit, the authority said wholesale fuel prices jumped by around EUR 0.10 per liter for both gasoline and diesel following increases in the CO₂ price and the greenhouse gas reduction quota (THG quota). Retail prices rose more moderately, increasing by an average of around EUR 0.09 per liter at the pump.
According to the authority, average fuel prices during the first days of January were around EUR 0.05 per liter higher than on December 31, 2025, for both E5 gasoline and diesel. While retail price increases broadly tracked wholesale developments, the Bundeskartellamt said pass-through was not automatic and remained subject to competitive pressure.
Bundeskartellamt President Andreas Mundt said the authority would intensify monitoring in light of the changes. “Cost increases are not an automatism for higher prices,” Mundt said, adding that consumer price sensitivity and active comparison shopping were essential to maintaining competitive pressure in the market.
CO₂ Pricing and THG Quota Effects
The report links the price increase to the rise in Germany’s CO₂ levy from EUR 55 to up to EUR 65 per tonne of CO₂ as of January 1, 2026, with a fallback purchase option at EUR 68 per tonne. At the same time, the THG quota increased from 10.6 percent to 12.1 percent, raising compliance costs for fuel suppliers.
The authority stressed that THG compliance costs vary significantly between companies depending on their individual strategies, including the use of biofuels, e-mobility credits or certificate trading. As a result, the Bundeskartellamt said there was no economic basis for sector-wide, uniform price markups linked to THG obligations.
2025 Cheaper Than 2024 Despite Volatility
Despite volatility and frequent price changes, the authority said 2025 was cheaper overall than the previous year. Average gasoline prices were around EUR 0.06 per liter lower than in 2024, while diesel prices fell by around EUR 0.04 per liter.
The report notes that while fuel prices broadly followed crude oil prices during the year, temporary decoupling occurred, particularly for diesel. These deviations were attributed to geopolitical factors, sanctions-related supply constraints, refinery maintenance and transport bottlenecks.
Autobahn Premiums and Price Dynamics
The Bundeskartellamt again highlighted large price differentials between motorway service stations and off-highway stations. In 2025, average fuel prices on German motorways were up to EUR 0.48 per liter higher than elsewhere, continuing a multi-year trend of widening price gaps.
The authority also recorded a further increase in the frequency of price changes. In 2025, fuel prices were adjusted an average of 22 times per day per station, up from around 20 changes in 2024. While legal, the authority warned that frequent changes could reduce transparency for consumers.
The Bundeskartellamt said it would continue close monitoring of fuel markets in 2026, emphasizing that competitive behavior — including active consumer price comparison — remains central to preventing unjustified price increases.
