Germany Moves to Curb Wartime Fuel Price Gouging

Germany has announced plans to grant its competition authority stronger powers to investigate and curb suspected excessive fuel price increases, amid concerns that oil firms may be exploiting rising global energy costs linked to the Middle East conflict.

Global crude prices have climbed sharply following disruptions to shipping routes, including heightened tensions affecting the Strait of Hormuz, a critical passage for oil and gas exports. The surge has triggered concerns across Europe about inflationary pressure, particularly at petrol stations.

Germany’s Economy Minister, Katherina Reiche, said fuel prices in the country have risen more steeply than the European average. She noted that the oil industry has not offered convincing explanations for the increases, prompting government intervention.

Under the proposed measures, the Federal Cartel Office will receive expanded authority to swiftly examine and halt suspected price markups in the wholesale energy sector. The reform would also shift the burden of proof to energy companies, requiring them to justify how they determine pricing decisions.

Currently, regulators must demonstrate evidence of wrongdoing before action can be taken. The new framework aims to make investigations faster and more proactive.

In addition, petrol stations will be limited to raising prices once per day, a step designed to improve transparency and reduce rapid price fluctuations at the pump.

The government is targeting passage of the new legislation by the end of the month or early April.

Germany has also joined efforts to stabilise global energy markets by tapping into strategic oil reserves as part of a coordinated release organised through the International Energy Agency. The initiative involves the release of hundreds of millions of barrels to ease supply pressures.

Officials are also exploring the possibility of establishing a strategic gas reserve to strengthen energy security ahead of the next winter season. Talks with potential operators are expected as part of the planning process.

The measures reflect broader European efforts to shield consumers and businesses from volatility in global energy markets while maintaining regulatory oversight during periods of geopolitical uncertainty.