Germany has rolled out a new regulation that restricts petrol stations to one upward change in retail fuel prices per day, with that permitted increase fixed at 12:00 pm. The measure, announced by the Federal Government, responds to a period of intense price swings that saw retail prices altered up to 22 times within a single day.
The policy is explicitly aimed at curbing what the government called the "rocket and feather effect" - a pattern in which prices jump quickly when crude oil costs climb but decline more slowly when they fall. Under the new rule fuel retailers retain the flexibility to lower prices at any point during the day, while increasing them is limited to the designated midday update.
Enforcement and penalties
Companies that breach the cap on daily price increases face fines that can reach 100,000 euros. In addition to the pricing restriction itself, lawmakers are preparing legal amendments intended to make it easier for authorities to pursue firms that engage in abusive or exploitative pricing practices in the fuel market.
Market context
The government said the policy comes amid a major disruption in oil supplies tied to conflict in the Middle East. Oil prices have risen above $100 per barrel after Iran effectively closed the Strait of Hormuz amid war involving the U.S. and Israel. Around 25% of the world’s oil transits that narrow waterway, and the closure produced what the government described as a massive supply disruption.
Officials framed the one-hike-per-day rule as a tool to restore more orderly pricing dynamics at the pump while still allowing stations to pass on lower costs to consumers without restriction.
Summary of measures
- Only one price increase per day is permitted, at 12:00 pm.
- Price decreases may be applied at any time.
- Violations can result in fines up to 100,000 euros and additional legal steps to deter abusive price hikes.