Germany · Fuel tax cut October 2026

Germany's fuel tax cut is law: 14 cents off energy tax from 1 October, about 17 cents at the pump

Fuel pump at a German filling station with the diesel and Super E10 price board

Since 1 October 2026 and until 31 December Germany lowers the energy tax on petrol and diesel by 14.04 cents per litre; with VAT on top that is 16.7 cents, “up to 17 cents” in the Bundesrat's words. The Bundestag passed the bill on 25 September 2026 by 434 votes to 128, and the Bundesrat approved it the same day (bundestag.de, bundesrat.de). The tax articles apply from 1 October. The yardstick for pass-through is the last ADAC reading before the start: Super E10 €2.267 and diesel €2.428 a litre in the weekly comparison of 28 September. Most of it reached the pump on day one: in the ADAC daily average for 1 October, Super E10 cost €2.114 and diesel €2.262 a litre, 14.5 and 15.2 cents less than on 30 September (dpa-AFX via onvista, 2 October, 09:00; Reuters summarised it as “around 13 cents”). Arithmetically that is 86.8 per cent (E10) and 91.0 per cent (diesel) of the 16.7 cents (our calculation). At 08:00 on Friday 2 October, prices of €2.098 and €2.248 were 3.6 and 3.9 cents above Thursday 08:00 again, but 10.9 and 11.3 cents below 30 September at 08:00; the ADAC says the cut is “still not fully reflected” (dpa-AFX). After the first full month the ADAC draws a mixed balance: in October Super E10 averaged €2.114 a litre, 15.2 cents less than in September, and diesel €2.261, 12.5 cents less; the motoring club says the cut was largely passed on for petrol but only partly for diesel (ADAC, 2 November). Lately the two grades have moved apart: in the weekly comparison of 28 October E10 cost €2.084, 2.6 cents less than a week earlier, while diesel rose 3.4 cents to €2.289, with Brent around $114 and a tight diesel market (ADAC). There is no legal obligation to pass the cut on in full (Bundesrat). The rebate ends on 31 December; from 1 January 2027 a price cap modelled on Luxembourg and Belgium is due to follow, and according to ZDFheute economy minister Reiche has tabled a draft bill for it (3 November). This page sets out what has been passed, what reached the pump in October, how much of the spring 2026 rebate reached drivers, and works out what the cut means for a tank of fuel.

1. What has been decided, and what has not

On Friday 25 September 2026 the Bundestag passed the temporary energy tax cut by 434 votes to 128 with no abstentions; the CDU/CSU and SPD coalition voted in favour, the opposition against (bundestag.de, printed paper 21/6561). The Bundesrat approved the law the same day at its 1068th plenary session (bundesrat.de). The tax rates on petrol and diesel fall by 14.04 cents a litre each; VAT is charged on the net price, so the arithmetic comes to 16.7 cents, “up to 17 cents per litre” in the Bundesrat's wording. The rebate runs from 1 October to 31 December 2026, 92 days. The bill puts the revenue loss at 2.485 billion euros of energy tax plus 293 million euros of VAT (bundestag.de); Berlin and the states share the burden half and half (Netz-Trends, 19 September 2026). It followed the federal-state agreement of 19 September and cabinet approval by written procedure (ZDFheute).

ExplainerFrom crude oil to the pumpSimplified price chain for gasoline and diesel
Crude oilBrent and WTI set the cost of the raw material, in US dollars per barrel.
RefineryThe crack spread is the premium gasoline and diesel earn over crude.
Wholesale and transportPipelines, ships, terminals and trucks move the fuel to market.
TaxesFuel duties, carbon charges and sales tax or VAT differ by country and state.
Filling stationLocal margin and competition set the final pump price.
Graphic: Global Oil Shock, simplified

Both chambers adopted the law; the articles on the tax cut have applied since 1 October 2026 and run until 31 December 2026 (bundesrat.de). The law contains no obligation to pass the cut on in full; how much reaches drivers is up to the oil companies and stations (Bundesrat).

Heating oil is excluded: the law cuts the energy tax on petrol and diesel only, while light heating oil stays at €61.35 per 1,000 litres, about 6.1 cents a litre (Energy Tax Act, section 2). Today's heating oil price for Germany is on our page Germany heating oil price forecast.

2. How much reaches the pump

As of 4 November, the first month in figures: Super E10 averaged €2.114 a litre in October, 15.2 cents less than in September, and diesel €2.261, 12.5 cents less (ADAC monthly review, 2 November). The ADAC sees the cut “largely” passed on for petrol and only partly for diesel, and calls the overall price level “too high”. The cheapest E10 day was 30 October at €2.068, the dearest diesel day 27 October at €2.289. In the weekly comparison of 28 October E10 stood at €2.084 and diesel at €2.289, more than 20 cents above petrol; the ADAC points to the higher oil price, Brent around $114, and the strained international diesel market. One caveat: October against September also contains the move in world crude and diesel prices, not only the tax cut; an adjusted analysis by the market transparency unit like the one for the spring rebate was not available on 4 November. The first days are set out in the next paragraph.

ExplainerWhy the rebate is hard to measureWhat separates the measured price drop from the pure tax effect
World marketThe monthly comparison also contains the move in crude and diesel prices.
Time and basisInterim readings differ by time of day and comparison value.
Station marginsIn spring, margins rose over the same weeks.
Spring patternThe spring rebate is the best guide to pass-through.
Graphic: Global Oil Shock, simplified

Day one as a daily average: according to the ADAC, Super E10 averaged €2.114 and diesel €2.262 a litre on 1 October 2026, 14.5 and 15.2 cents less than on 30 September (dpa-AFX via onvista, 2 October, 09:00; Reuters summarised the ADAC figures as “around 13 cents”). Measured against the 16.7 cents that were arithmetically possible, 86.8 per cent reached drivers on E10 and 91.0 per cent on diesel on the first day (our calculation from the figures quoted). At 08:00 on Friday 2 October, prices of €2.098 (E10) and €2.248 (diesel) were 3.6 and 3.9 cents above Thursday 08:00 again, but 10.9 and 11.3 cents below Wednesday 30 September at 08:00; the ADAC said the energy tax cut was “still not fully reflected” and that there was “still room for lower fuel prices” (dpa-AFX). The interim readings of 1 October differed by time of day and comparison value: dpa reported €2.052 and €2.197 up to 11:45, the ADAC 14 to 15 cents less than the day before at 12:15, Bundeskartellamt chief Mundt about 18 cents since midnight (dpa via finanzen.at, 1 October, 17:58), and benzin.jetzt 12.7 and 13.3 cents at 431 stations by 11:00 (Kurier-Verlag citing dpa, 2 October). For comparison, for the spring rebate the Bundeskartellamt found 13.8 cents on diesel and 13.0 cents on Super E5, a different grade from the E10 quoted now (report of 10 July 2026).

The spring rebate is the best guide. Between 1 May and 30 June 2026 the energy tax was cut by 14.04 cents (about 17 cents gross, 1.6 billion euros), and the Bundeskartellamt's market transparency unit reported on 10 July 2026 that 13.8 of 16.7 cents reached diesel buyers, 82.6 per cent, and 13.0 cents or 77.8 per cent reached Super E5 buyers (Netz-Trends). Station margins rose by about 3.3 cents a litre on diesel and 1.9 cents on E5 over the same weeks. ZDFheute rounds the outcome to “about 80 per cent”.

Applied to October, that pattern would leave drivers with 13 to 14 of the 17 cents. The ADAC motoring club is demanding full pass-through and a seat at the table when the price cap is designed (ADAC, September 2026). The ADAC October balance opens this section.

RebatePeriodEnergy taxGrossPassed through (diesel)
Spring 20261 May–30 June 2026−14.04 ct≈ 17 ct13.8 of 16.7 ct (82.6%), Bundeskartellamt 10 July 2026
Autumn 20261 Oct–31 Dec 2026−14.04 ct≈ 17 ctADAC daily average 1 Oct: E10 −14.5 ct, diesel −15.2 ct vs 30 Sep, i.e. 86.8% and 91.0% of the 16.7 ct (our calculation); 2 Oct 08:00 again 3.6/3.9 ct above the day before (dpa-AFX); October average E10 −15.2 ct, diesel −12.5 ct on September, market moves included (ADAC, 2 Nov 2026)

Our glossary entry on the pass-through effect explains why tax cuts and crude moves rarely arrive one-to-one at the pump.

3. What it means for one tank and one quarter

At the full 17 cents, a 50-litre fill saves €8.50; at the spring's 13.8 cents it saves €6.90. A driver using 375 litres a quarter, 1,500 litres a year, saves between €51.75 and €63.75 over the three months. The reference point is the record of 17 September 2026: Super E10 at €2.308 and diesel at €2.471 per litre (ADAC). Diesel at €2.47 would fall to €2.30 with full pass-through, or €2.33 on the spring pattern. Meaningful, but not large: diesel rose 10.1 cents in the single week to 15 September (ADAC).

ExplainerThree practical points on the rebateWhat the time-limited rebate means for your tank and budget
Time limitWhether fuel gets dearer afterwards depends on the price cap.
Time of dayCompare stations and fill up shortly before noon, when prices are usually lowest.
Crude priceDo not count on the rebate if the crude price keeps rising.
Graphic: Global Oil Shock, simplified

Three practical points. The rebate applies up to and including 31 December; whether fuel gets dearer on 1 January depends on whether the price cap is in place by then, which was still open on 4 November. Compare stations and use the time of day: the ADAC advises filling up shortly before noon, when prices are usually lowest (28 October). And do not count on the rebate outlasting the crude market: at a euro-dollar rate of 1.14 (HeizOel24.at, 22 September 2026) 17 cents a litre is worth roughly 30 dollars a barrel, and Brent gained more than that between 1 July and 18 September 2026, from $71.57 to $104.33 (Wikipedia, Fortune).

See what the rebate does to your annual fuel budget in a minute: mileage, consumption, fuel type.

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4. The 2027 price cap: what is known

The government wants a fuel price cap in place by 1 January 2027 at the latest, following Luxembourg and Belgium (ZDFheute, 19 September 2026). In both countries the state sets maximum pump prices from Rotterdam product quotations that retailers may not exceed. According to ZDFheute on 3 November, economy minister Reiche has tabled a draft bill for it; we could not confirm the cap level or a date for votes in the Bundestag and Bundesrat by 4 November. In September the ministry had stressed two conditions: the cap must be temporary, and security of supply must be guaranteed.

Economists criticise both the rebate and the cap as poorly targeted, because they help heavy drivers with large cars more than households without a car (ZDFheute). They are price instruments, not social policy. Households heating with oil get nothing from either; our German heating oil forecast covers the winter outlook for them.

5. Frequently asked questions about the German fuel tax cut

When does the German fuel tax cut start?
On 1 October 2026. The Bundestag and the Bundesrat passed the law on 25 September 2026; it ends on 31 December 2026 (bundestag.de, bundesrat.de).
How big is the cut?
Energy tax falls by 14.04 cents per litre of petrol and diesel; including VAT the arithmetic relief is 16.7 cents, “up to 17 cents per litre” according to the Bundesrat (25 September 2026).
Will drivers get the full 17 cents?
Almost: in the ADAC daily average for 1 October 2026, Super E10 cost €2.114 and diesel €2.262, 14.5 and 15.2 cents less than on 30 September (dpa-AFX via onvista, 2 October). Arithmetically that is 86.8 per cent (E10) and 91.0 per cent (diesel) of the 16.7 cents (our calculation). At 08:00 on 2 October prices were 3.6 and 3.9 cents higher again than the day before at 08:00; the ADAC says the cut is “still not fully reflected”. In spring 2026 the Bundeskartellamt measured 13.8 of 16.7 cents on diesel (82.6 per cent) and 13.0 cents on Super E5 (77.8 per cent). For October as a whole, E10 averaged €2.114, 15.2 cents less than in September, and diesel €2.261, 12.5 cents less; the ADAC sees the cut largely passed on for petrol and only partly for diesel (ADAC, 2 November 2026).
Does the cut apply to heating oil?
No. The law cuts the energy tax on petrol and diesel only; light heating oil stays at €61.35 per 1,000 litres, about 6.1 cents a litre (German Energy Tax Act, section 2).
What does it cost?
The bill puts it at 2.485 billion euros of energy tax plus 293 million euros of VAT (printed paper 21/6561); the Bundesrat speaks of relief of around 2.5 billion euros, shared half and half between the federal government and the states (bundesrat.de, Netz-Trends).
What happens after 31 December 2026?
A fuel price cap on the Luxembourg/Belgian model is planned for 1 January 2027 at the latest. According to ZDFheute, economy minister Reiche has tabled a draft bill (3 November 2026); the cap level and a vote date could not be confirmed on 4 November.

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