The Bundestag approved a new package of measures on March 26 aimed at curbing rising fuel prices, in response to sharp increases linked to the conflict in Iran.
Under the new law, gas stations will be allowed to raise prices only once per day, at 12:00 noon, while price reductions can be made at any time.
Violators will face fines of up to €100,000.
The measures also include tightening antitrust legislation, requiring oil companies to objectively justify any significant price increases. The Federal Cartel Office will have the authority to intervene immediately in the wholesale market to prevent abuses.
The law was supported by governing coalition parties CDU/CSU, SPD, and the Greens, although the latter warned that the measure could increase dependence on fossil fuels.
Meanwhile, The Left and Alternative for Germany voted against it, calling the package a “simulation” of action. The Federal Council is expected to approve it tomorrow, allowing the new rules to enter into force at the beginning of April. The package will be reviewed after one year.
The German government is also preparing additional measures, including reducing VAT at fuel stations, introducing a windfall tax on energy companies, and potentially capping prices or lowering tolls for trucks.
Economy Minister Katherina Reiche stated that she is also open to a temporary increase in travel allowances, currently set at 38 cents per kilometer.
“It is important to send a message to those who depend on their cars,” Reiche said, adding that a possible reduction in electricity tax for everyone is also being discussed.
