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CO₂ Price: How It Makes Your Petrol and Diesel More Expensive

Editorial
5 min read
2026-02-22
CO₂ Price: How It Makes Your Petrol and Diesel More Expensive

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What Is the CO2 Price?

Since January 1, 2021, a national CO2 price has applied in Germany for fossil fuels and heating fuels. The Fuel Emissions Trading Act (BEHG) requires fuel traders to purchase emission certificates for every ton of CO2 produced by burning their products. The costs are passed on to consumers – directly visible in the price per liter at the gas station.

Price Development 2021-2026

The CO2 price has risen continuously since its introduction: it started at EUR 25/ton in 2021, rose to EUR 30 in 2022, stayed at EUR 30 in 2023 (pause due to energy crisis), increased to EUR 45 in 2024 and EUR 55 in 2025. Since 2026, certificates have been auctioned within a price corridor of EUR 55 to 65 per ton – the auctions since July 2026 have each cleared at the EUR 65 cap.

How the CO2 Price Affects the Price per Liter

The conversion is simple: burning one liter of petrol produces 2.31 kg of CO2, one liter of diesel produces 2.65 kg of CO2. At a CO2 price of EUR 65/ton, the following surcharge applies (net): Petrol: 2.31 kg × EUR 0.065/kg = 15.0 cents per liter. Diesel: 2.65 kg × EUR 0.065/kg = 17.2 cents per liter. Including VAT, that is about 17.9 and 20.5 cents.

This means: of every liter of petrol you fill up in 2026, about 15 cents (net) go to the CO2 price. With a 50-liter tank, that is EUR 7.50 per fill-up – at 20 fill-ups per year, this adds up to EUR 150.

Natural Gas, LPG and the CO2 Levy

Alternative fossil fuels are also affected: Natural Gas (CNG): 2.79 kg CO2/kg, resulting in 18.1 cents/kg surcharge. LPG: 1.64 kg CO2/L, resulting in 10.7 cents/L surcharge. Natural gas is thus more heavily burdened than LPG, as it produces more CO2 per kilogram. Electricity for electric cars is exempt from the CO2 price, as the electricity sector already participates in the European Emissions Trading System.

Outlook: EU ETS 2 from 2028

The start of the new European Emissions Trading System for buildings and transport (EU ETS 2) has been postponed to 2028; in 2027 a transitional arrangement still applies in Germany. With EU ETS 2, the national CO2 price will be absorbed into the European system. Then the market – supply and demand for certificates – will determine the price rather than politicians. Experts expect a price of EUR 100-150/ton by 2030.

What does this mean for the price per liter? At EUR 100/ton: petrol +23.1 cents/L, diesel +26.5 cents/L. At EUR 150/ton: petrol +34.7 cents/L, diesel +39.8 cents/L. Compared with today (EUR 65/ton), that would be about 8 to 23 cents per liter more (net) – solely due to the CO2 price.

What Can You Do?

The CO2 price is a deliberate incentive to switch to low-emission mobility. In the short term, fuel-efficient driving helps: every liter saved also saves the CO2 levy. In the medium term, it is worth looking at hybrid or electric vehicles, which are not or less affected by the CO2 price. In the long term, e-fuels and hydrogen will offer alternatives, but their availability and prices remain uncertain.

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