Berlin discussing measures to prevent petrol price gouging

The German government is discussing “specific measures” to protect the population from soaring oil prices due to the conflict in the Middle East, Finance Minister Lars Klingbeil said on Monday.

Klingbeil, who is also vice chancellor, said after a meeting of EU finance ministers in Brussels that the geopolitical situation was being “exploited to drive up profits.”

“We are seeing predatory prices,” added the minister, saying it was indecent to maximize profits at the expense of commuters, small businesses and employees.

Politicians must act quickly, he argued. “We are currently discussing specific measures within the federal government,” Klingbeil said, noting antitrust laws as one possible path forward.

Other potential measures include increasing transparency requirements for oil companies to make it easier to prove price gouging.

He also advocated stipulating that fuel prices should only be allowed to increase once a day. This could be implemented very quickly without a lengthy legislative process, he explained.

In Austria, gas stations are allowed to increase their prices once a day at midday. Price reductions may be implemented at any time.

Oil prices continued to soar due to the war in the Middle East that began on February 28, reaching almost $120 a barrel overnight, fueling concerns about a setback in economic growth.

A report that the G7 group, made up of major Western industrialized countries, plans to use its national oil reserves to curb rising prices in the oil market has eased market tensions.

French Finance Minister Roland Lescure said on Monday that no decision had yet been taken following the G7 finance ministers’ meeting in Brussels.