The expiration of the fuel tax cut sparks fears of sharp price hikes at gas stations starting at noon today.

The government’s fuel tax cut, which reduced gas and diesel prices by 17 cents per liter, officially ended at midnight. Introduced to cushion the impact of rising fuel costs during the Iran conflict in May and June, the measure cost the government €1.6 billion. Despite its intent, a study by RWTH Aachen revealed that the relief was minimal for most households, averaging just €10-15 per month, and even less for lower-income families. Researcher Aaron Praktiknjo described the tax cut as a ‘relatively imprecise measure.’

With the tax cut gone, experts predict fuel prices will rise sharply starting at noon today. On Tuesday, prices had already surged, with diesel increasing by 24 cents per liter and E10 by 20.3 cents, according to the ADAC. The organization criticized the hikes, stating that they were unjustified given the current stability of crude oil prices. Long lines at gas stations were reported on Tuesday as drivers rushed to fill up before the anticipated price spike.

The president of the Federal Cartel Office, Andreas Mundt, has issued a stern warning to oil companies against implementing excessive price increases that cannot be justified. Mundt stated that his agency would investigate any indications of unfair pricing practices. He also noted that the full benefit of the fuel tax cut had not been passed on to consumers, though precise figures are still being validated.

Federal Transport Minister Patrick Schnieder echoed Mundt’s concerns, urging oil companies to act responsibly and avoid exploiting the situation. Meanwhile, Christian Küchen, CEO of the Fuels and Energy Industry Association, defended the sector, asserting that the initial tax cut had been fully reflected in prices and that the reintroduction of the regular tax rate would naturally lead to higher costs.

As fuel prices continue to climb, the debate over the effectiveness of the tax cut and the fairness of pricing practices intensifies. With the midday deadline looming, consumers and policymakers alike are bracing for the impact on household budgets and the broader economy.