German fuel prices fall as subsidies take effect

German motorists began paying less for fuel on October 1, 2026, after subsidies took effect to soften the impact of higher energy prices linked to the Middle East supply shock.

The automobile association ADAC said petrol prices had fallen by about 14 cents on average to 2.06 euros a litre, while diesel prices had dropped by 15 cents to 2.20 euros a litre.

The subsidy is officially set at 17 cents a litre, although current oil prices and exchange rates can change how much drivers see at the pump.

Motoring groups warned that the discount may not be passed on in full. Auto Club Europa said the new fuel discount must reach consumers and must not partly remain with the oil industry.

Germany's monopolies commission, a competition watchdog, said energy companies kept about 200 million euros of the 1.6 billion euros paid out under a previous fuel subsidy scheme in May and June.

Economists also criticised the measure as poorly targeted. Clemens Fuest, head of the Ifo Institute, told the Augsburger Allgemeine daily that the fuel discount redistributes money in favour of frequent drivers with large cars.

Other European Union countries have also taken steps, including fuel tax cuts and direct payments, to ease the impact of higher fuel costs.