Motorists in Germany will need to prepare for a noticeable increase in fuel prices from January 2026.
According to forecasts from the ADAC, the automobile club, petrol and diesel could become 17 to 19 cents more expensive per liter as a result of a new stage in the country’s CO₂ pricing system.
How the carbon price works
Since 2021, Germany has applied a carbon emissions surcharge on fossil fuels.
The charge started at €25 per tonne of CO₂ and gradually rose to €55 by 2025. Beginning in 2026, however, the system will change: instead of fixed rates, emissions certificates will be auctioned on the market within a price corridor of €55 to €65 per tonne.
These amounts do not include value-added tax, meaning the actual price impact at the pump may be higher. Furthermore, global oil price fluctuations can amplify the effect on consumers.
What the levy means per liter
The surcharge translates directly into additional cents per liter of fuel:
- 2021: ~7 cents petrol / ~8 cents diesel
- 2022–23: ~8.4 cents petrol / ~9.5 cents diesel
- 2024: ~12.7 cents petrol / ~14.2 cents diesel
- 2025: ~15.7 cents petrol / ~17.3 cents diesel
- 2026: ~16.9–18.9 cents expected per liter
For commuters and rural households that depend heavily on cars, the increase will weigh particularly heavily on household budgets.
Who pays, who benefits
The government argues that CO₂ pricing is an essential instrument for reducing greenhouse gas emissions and achieving climate targets.
The revenue from the scheme is earmarked for climate protection initiatives, support for renewable technologies, and measures to modernize Germany’s energy system.
Yet, critics point out that the burden falls disproportionately on drivers without alternatives to the car.
How to save money at the pump
The ADAC recommends drivers adapt their fueling habits to ease the impact:
- Compare prices before filling up, using online tools or apps.
- Avoid always using the same station.
- Refill before the tank runs completely dry.
- On motorway journeys, leave the Autobahn to find cheaper fuel instead of filling up at rest stops.
- Only add enough fuel at motorway stations to reach cheaper ones later.
Best tip: Fill up in the evening between 6 pm and 10 pm. Prices are usually significantly lower than in the morning, with potential savings of several euros per tank.
