Germany is clamping down on fuel price hikes amid war-driven oil volatility that is stressing Europe’s largest economy.
The government approved draft legislation on Tuesday that would limit how often gas stations can hike prices, tightening antitrust oversight of fuel suppliers. The crackdown comes as Brent tops $100 per barrel amid the ongoing Iran conflict, with retail fuel costs soaring across the continent.
Under the proposal, gas stations in Germany will be allowed to increase gasoline and diesel prices only once per day, at noon. Price reductions, however, can be made at any time. Violations could trigger fines of up to €100,000 ($115,000), according to the economy ministry.
The draft law goes further than pricing rules. It would shift the burden of proof in antitrust cases from regulators to companies, requiring fuel suppliers to demonstrate that their pricing behavior complies with competition rules—effectively flipping the traditional enforcement model.
The policy shift follows mounting backlash from consumers and political pressure as pump prices climbed above €2 per liter this month. That spike has outpaced the broader European average, raising questions in Berlin about whether market dynamics—or something more opportunistic—are at play.
Economy Minister Katherina Reiche said the oil industry had failed to provide a convincing explanation for the sharper increase in German fuel prices.
The price hikes are tied directly to global crude oil supply disruptions. As of March 17, flows through the Strait of Hormuz remain constrained due to the Iran conflict, with shipping risks and insurance costs limiting traffic through the critical chokepoint. This has pushed crude oil prices higher, and with and refined product prices, with Brent trading above $100 per barrel, with diesel markets particularly tight.
Germany, heavily reliant on imports and sensitive to energy price swings, is feeling the impact quickly at the consumer level.
The legislation is expected to take effect in April, pending approval from both houses of parliament, and will be reviewed after one year.
By Julianne Geiger for Oilprice.com
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