German Economics Minister Katherina Reiche of the CDU has presented initial plans for a fuel price cap intended to replace the country’s expiring fuel discount. The draft law would establish “objective conditions” for activating the measure, according to information obtained by the German Press Agency from the Economics Ministry.
The cap would be considered if fuel prices rose significantly above the European average for three consecutive weeks. Any maximum-price regulation would be limited to three months. Its application could also be suspended if fuel supply security were at risk.
The draft is currently in the early coordination stage, the first phase of discussion within the federal government. The Pioneer and Handelsblatt first reported on the proposals.
According to the ministry, the legislation is designed to curb exceptional fuel price increases that substantially exceed European price trends while ensuring continued access to petrol and diesel. Reiche has repeatedly stressed that any price restriction must not endanger supply security.
In mid-September, leaders of Germany’s governing coalition agreed to hold talks with the mineral oil industry with the aim of introducing a fuel price cap by January 1, 2027, at the latest. The measure is intended to follow models used in Luxembourg and Belgium and would be temporary and linked to a crisis, including price spikes associated with the Iran conflict.
The coalition also said that supply security must be guaranteed and abusive price increases prevented. The existing fuel discount is due to expire at the end of December.
Sources: Der Spiegel.