Merz Vows Fuel Relief Plan Soon as German Pump Prices Hit Record

German Chancellor Friedrich Merz said on Tuesday that proposals to ease the burden of record fuel prices on consumers would be presented "very soon," as his government faces mounting pressure ahead of a closely watched state election.

Speaking at a business event, Merz acknowledged the strain on motorists, saying that for many people who depend on their cars daily, "the limit of what they can bear has been reached." His comments came a day after the nationwide daily average price for a litre of E10 gasoline reached a record €2.286.

Fuel costs have climbed steadily since the outbreak of conflict in the Middle East in late February. The government had previously offered temporary relief by cutting energy taxes from May through June, which reduced petrol and diesel prices by around 17 cents per litre.

Merz did not outline how any new intervention would work, but said he was consulting with Germany's 16 federal states and coalition partners in Berlin. Finance Minister Lars Klingbeil said he was not yet aware of the specifics of Merz's proposals but stressed that decisions needed to be taken quickly. Klingbeil is expected to push for a windfall tax on European energy firms at an informal meeting of EU finance ministers.

A proposed fuel price cap, supported by Klingbeil's centre-left Social Democrats, has encountered resistance from the CDU-led economy ministry, which argues it would be difficult to implement.

The political backdrop is tense. Merz's Christian Democrats are bracing for what could be their worst-ever result in the predominantly rural state of Mecklenburg-Western Pomerania on Sunday. The party was trounced in a state election earlier this month, handing a historic win to the far-right Alternative for Germany.

Manuela Schwesig, the Social Democratic state premier of Mecklenburg-Western Pomerania who is seeking another term, has accused Merz's government of standing by while fuel prices surge. She has called for a fuel price cap based on the Luxembourg model of a nationwide maximum.

Merz has repeatedly said he intends to serve out his full four-year term, and his conservatives plan to meet on Sunday to rally behind him, according to a party source.