Filling up the tank in Germany is about to get more expensive — again. The CO₂ tax on fossil fuels will increase noticeably from January 2026, when the country moves to a new auction-based emissions trading system.
According to calculations by ADAC, the national automobile association, the price per tonne of emitted carbon dioxide will range from €55 to €65, instead of the current fixed rate. This could add up to 17 cents per litre of petrol and 19 cents per litre of diesel — purely from the CO₂ surcharge. Other factors like oil prices, exchange rates, and VAT will come on top.
From fixed tax to emissions auction
Since 2021, Germany has imposed a national carbon levy on fuels. The rate has risen steadily — from €25 per tonne at launch to €55 in 2025, a total increase of €30 in just four years. This alone made petrol about three cents more expensive per litre this year and diesel slightly more.
In 2026, the calculation changes: fuel companies will need to buy CO₂ certificates through an auction process. That means prices will fluctuate with demand, and motorists could feel the difference directly at the pump. At a medium certificate price of €60, ADAC estimates fuel will become around 3 cents more expensive than in 2025.
Why Germany is doing this
The CO₂ levy is part of the government’s effort to cut greenhouse gas emissions and encourage cleaner mobility. The logic is simple: higher fuel prices should push drivers to reduce car use or switch to electric vehicles.
Transport remains Germany’s third-largest source of CO₂, after energy and industry. In 2023, roughly 22% of total emissions came from cars, trucks, and buses. Since its introduction, the CO₂ price has been gradually increased, with the resulting revenue flowing into the Climate and Transformation Fund — financing green technology, energy efficiency, and business innovation.
A Europe-wide system is coming
Germany’s national scheme will run until 2028, when a new EU-wide emissions trading system (ETS II) takes over. Initially planned for 2027, the launch was delayed to allow member states more time to adapt.
Once the EU system is in place, the carbon price for transport and buildings will be determined entirely by market forces — based on supply and demand for emission certificates.
ADAC calls for relief measures
The automobile association does not expect sudden price shocks during the transition, since the European carbon price may start below the German level. However, by 2030, fuel costs could rise sharply as prices converge.
ADAC insists that revenue from the CO₂ levy should be used to ease the burden on citizens, especially commuters and low-income households. Suggested measures include a higher commuter allowance or lower electricity prices to offset the impact of more expensive fuel.
What drivers should expect
If the price per tonne averages €60, motorists will face an extra 17 to 19 cents per litre purely from the CO₂ charge. Combined with oil market fluctuations, that could mean paying €2 or more per litre at the pump in some regions.
The message is clear: driving in Germany is set to become more costly — unless you switch to something greener.
