Germany moves to limit daily fuel price increases
Berlin, March 2026 (dpa) German lawmakers have approved new legislation restricting petrol stations to raising fuel prices only once per day, as the government seeks to shield consumers from surging energy costs.
The increased fuel price linked to the Iran conflict.
The measure, backed by Chancellor Friedrich Merz’s conservative-led coalition and supported by the Greens, passed the Bundestag on Thursday.
It is expected to receive final approval from the Bundesrat on Friday and could take effect as early as next week.
Under the new rules, petrol stations will be allowed to increase prices just once daily, although they may lower prices at any time.
The reform is modelled on a similar system in Austria and is designed to improve price transparency and predictability for consumers.
Fuel prices in Germany and across Europe have risen sharply amid tensions in the Middle East, particularly following disruptions linked to Iran’s blockade of the Strait of Hormuz.
The legislative package also expands the authority of the Federal Cartel Office to investigate and act against excessive pricing practices.
Sebastian Roloff of the Social Democratic Party, the junior partner in the coalition, described the move as “an important first step” but stressed that further action would be needed to address high energy costs.
However, critics remain unconvinced.
Leif-Erik Holm of the far-right Alternative for Germany dismissed the measures as ineffective, accusing the government of offering “empty gestures.”
Violations of the new pricing rules could result in fines of up to 100,000 euros (116,000 dollars), according to the draft legislation.
Economists are divided on the potential impact of the reform.
Justus Haucap suggested the rule may help consumers compare prices more easily but cautioned that its long-term effect on reducing costs remains uncertain.
Meanwhile, Andreas Mundt, head of the Federal Cartel Office, noted that fuel prices in Germany are highly volatile, with petrol stations adjusting prices an average of 20 times per day.
This is up to 50 times during peak periods.
The government has signalled that additional measures may follow.
A coalition task force is set to meet again on Friday to discuss options including temporary energy tax cuts, increased commuter allowances and fuel price caps.
Also, the possible introduction of a windfall tax similar to measures adopted by the European Union during the 2022 energy crisis.
As pressure mounts on policymakers to respond to rising living costs, the effectiveness of the new pricing rule is likely to come under close scrutiny in the weeks ahead. (dpa/
