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Oil Shock Pushes German Fuel Above €2 as Merz Pauses on Pump Relief

Officials respond to a geopolitics-driven oil spike by questioning blanket rebates.

Overview

  • ADAC data show diesel and E10 in Germany climbing past €2 per liter around March 4, with Thursday’s diesel daily average at €2.042, the highest since November 2022.
  • Brent crude rose above $90 a barrel for the first time since 2024, a key market driver behind the rapid jump at German filling stations.
  • Bavaria’s economics minister Hubert Aiwanger urges an immediate halt to the national CO₂ levy, arguing it would shave roughly 15–20 cents per liter.
  • Chancellor Friedrich Merz says the government will review market developments before deciding on a fuel rebate, as the Bundeskartellamt stresses it can act only on evidence of cartel behavior and not on geopolitics-driven price surges.
  • Economists, business groups, and climate advocates oppose a new tank rebate as costly and poorly targeted, while ADAC notes wide price gaps between stations and higher morning prices that steer some drivers to refuel later or across borders.