Minister Reiche outlines conditions for a fuel price cap in Germany — Der Spiegel

Germany’s Ministry for Economic Affairs has prepared initial proposals for introducing a temporary fuel price cap. As Der Spiegel reports, the draft law by Economy Minister Katherina Reiche provides for objective conditions for applying such a mechanism.

Conditions for limiting prices

The price cap is proposed to be introduced only if fuel price increases in Germany substantially exceed the European average for three consecutive weeks. The maximum duration of the restriction would be three months.

The application of the cap may be suspended if a threat to security of supply arises. The ministry noted that the draft law aims to limit exceptional increases in gasoline and diesel prices that significantly exceed the Europe-wide trend, while ensuring fuel supplies.

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The mechanism is planned to be introduced in 2027

The draft is at an early stage of interministerial coordination within the German government. In mid-September, coalition leaders agreed to hold talks with the oil industry to introduce, no later than January 1, 2027, a mechanism modeled on those in Luxembourg or Belgium.

The restriction is expected not to be permanent and to be applied in crisis circumstances. The agreement was linked to price spikes caused by the conflict around Iran. At the end of December, a fuel discount in Germany expires, which the new mechanism is intended to replace.