Fuel prices in Germany have spiked sharply as the government’s temporary fuel tax discount comes to an end.

Fuel prices across Germany have risen significantly ahead of the expiration of the government’s temporary fuel tax discount, which ends at midnight. The tax break, introduced in May, reduced taxes on gasoline and diesel by 16.7 cents per liter. However, as the measure winds down, prices have surged, with diesel increasing by an average of 24 cents per liter and E10 gasoline by 20.3 cents per liter nationwide, according to the German automobile association ADAC.

The price hikes have led to long lines at gas stations, as drivers rushed to fill up their tanks before the higher prices take effect. Reports indicate that some stations experienced price jumps that were significantly higher than usual midday adjustments. On Monday, the average price for Super E10 gasoline rose to €1.861 per liter, up 1.6 cents from Sunday, while diesel climbed by 1.9 cents to €1.784 per liter. Both fuels have seen six consecutive days of price increases.

The Federal Cartel Office has issued a warning to oil companies, cautioning them against unjustified price hikes. Andreas Mundt, the agency’s president, stated that companies should not exploit the situation to impose disproportionate price increases. The agency has pledged to investigate any reports of such practices. This stance aligns with findings from the ifo Institute and the Monopolies Commission, which have previously criticized the incomplete transfer of the tax discount to consumers, particularly for diesel.

The fuel industry has pushed back against these accusations. Christian Küchen, managing director of the Fuels and Energy Industry Association, argued that the tax discount was fully passed on to consumers, with prices reduced by 17 cents per liter at the time of its introduction. He added that the return to regular tax rates on July 1 would naturally lead to price increases.

The German government has decided not to extend the tax relief beyond its initial two-month period, citing the €1.6 billion cost to the federal budget. As the tax break ends, consumers are bracing for further price hikes, while authorities remain vigilant against potential price gouging.