Following the ceasefire agreement in the Iran war, hopes for immediate price reductions at German gas stations were dashed. Diesel and Petrol prices rose by around five and six cents respectively on Wednesday midday, as reported by the ADAC (German Automobile Club). The federal government called for "realism," stating that the situation on global energy markets remains uncertain. Meanwhile, debate over potential relief measures for consumers continues.
"Oil prices alone fell by double digits overnight Wednesday," SPD member Esra Limbacher told Düsseldorf's "Rheinische Post." "This must now be quickly reflected in prices at the pump." CSU member Andreas Lenz echoed this sentiment: "There is no right to rip-off," he told broadcaster Welt TV. The lower oil price must be quickly visible at gas stations.
However, deputy government spokesman Sebastian Hille cautioned that even with the reopening of the Strait of Hormuz following the ceasefire between the USA and Iran, it will take time "until shipping returns to pre-war levels and supply in the global market stabilizes."
"Accordingly, it will also take time before significant price reductions reach us," Hille continued. However, fuel prices had also risen sharply immediately after the start of US-Israeli attacks in late February due to increased oil prices. A spokesman for the Federal Ministry of Economics said the situation at gas stations will now be closely monitored. Further relief measures were not ruled out by the federal government.
"One should definitely not panic and say we urgently need to bring this price down," said Monika Schnitzer, chair of the Council of Economic Experts, to broadcaster Phoenix. "The solution cannot be to now relieve everyone on price." She advised driving less and slower.
The chairman of the Young Union, Johannes Winkel, declared the debate over relief measures over. "If the oil price drops again, we don't need any discussion about relief anymore," he told newspapers of the Funke Media Group. Should the state want to intervene, it could "quite simply reduce taxes and levies on fuel."
The federal government rejected accusations of ineffectiveness regarding measures taken so far to dampen price increases at gas stations. The fuel price package only came into force last Wednesday, said government spokesman Hille. "This examination period is not really suitable for an initial judgment," especially as it extends over the Easter holidays.
Since last Wednesday, gas stations have only been allowed to raise fuel prices once a day at 12:00 noon. The ADAC declared this rule a failure. "The mobility club's fears have been confirmed that mineral oil companies are responding to the lack of flexibility in price adjustments with significant risk premiums," it stated. Prices have continued to rise, decoupled from the oil price.
The automobile club called for intervention by cartel authorities. "Politics has equipped the Federal Cartel Office with higher powers. It is incomprehensible that they are not being used and the authorities remain in the observer role," explained the club's technology and traffic president, Karsten Schulze.
Left Party member Christian Görke showed little optimism. "High energy prices will hardly fall even with more peaceful developments in Iran," he stated. "The pattern is always the same: Gas station prices shoot up like a rocket, but coming down happens at a snail's pace, if at all." He called for an excess profits tax on mineral oil companies and relief for citizens.
From breaking news to thought-provoking opinion pieces, our newsletter keeps you informed & engaged.
