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Germany Proposes Conditional Fuel Price Cap

The draft would allow a short, three-month January measure to be switched on only if German pump prices rise sharply compared with EU peers.

Overview

  • The Economy Ministry has produced a first draft that would create a legal mechanism to impose a temporary, three-month price cap starting 1 January rather than automatically setting one.
  • The measure would be triggered only after three consecutive weeks in which German petrol and diesel prices exceed average EU price inflation by more than five percentage points.
  • The Markttransparenzstelle at the Bundeskartellamt would check weekly whether the trigger is met, using data beginning with the second full week of January.
  • States would be able to suspend the measure or set regional deviations to protect local supply, and the draft sets fines of up to €100,000 for station operators and €500,000 for company officials who breach rules.
  • The oil industry has refused to help draft the cap over fears of illegal price coordination, the ministry calls the proposal early-stage, and the draft rules out a new Tankrabatt or an immediate windfall tax as short-term options.