Germany has implemented a regulation prohibiting gas stations from raising pump prices more than once per day, effective March 16, 2026, to address volatile fuel costs linked to the U.S.-Iran war's oil supply disruption.
Regulation Overview
- Gas stations may increase prices only once daily, specifically at 12:00 p.m.
- Price reductions are allowed at any time.
- This replaces a prior system where prices changed up to 22 times per day.
Context and Motivation
- The rule targets the "rocket and feather effect," where fuel prices rise quickly with crude oil costs but fall slowly.
- It responds to the U.S.-Iran war, which closed the Strait of Hormuz, disrupting about 25% of global oil supply and pushing oil prices above $100 per barrel.
- Germany has seen sharper petrol price increases compared to other European countries.
Enforcement and Penalties
- Violations can incur fines up to 100,000 euros ($116,000).
- The government is proposing legal amendments to strengthen action against "abusive fuel price increases."
Oil Market Conditions
- Oil prices surged: West Texas Intermediate futures above $98 per barrel and Brent crude above $101 per barrel, both down 2% recently.
- The Strait of Hormuz supply disruption remains a critical factor in price volatility.