German Petrol Price Controls Increase Fuel Costs for Consumers

Research from the ZEW institute and the Duesseldorf Institute for Competition Economics indicates that German petrol price controls have increased the average cost of fuel. The law, introduced in March by Economy and Energy Minister Katherina Reiche, limited price increases to once daily at noon to protect motorists after Iran reduced global oil and gas supplies.

Analysis of 15,000 stations reveals the measure boosted retailer margins by five to six cents per litre. The researchers found that prices now spike at midday and decline slowly, which reduces the windows for consumers to find cheaper fuel. This development occurs as the government of Friedrich Merz manages a sluggish economy and political friction between the CDU and SPD coalition partners.

Economy ministry spokesman Daniel Grewe dismissed the study as suggestive. He argued that the findings are incomplete because the research does not account for the specific volumes of fuel purchased at different times of the day.