German petrol stations to be allowed only one price hike per day

Germany plans to ban petrol stations from raising prices more than once a day, Economy Minister Katherina Reiche said on Wednesday in an effort to combat skyrocketing fuel costs.

The government is looking to implement the measure as quickly as possible in light of the rising prices caused by the Iran war, Reiche said in Berlin.

Reiche noted that fuel prices rise extremely quickly when crude oil costs are high, while in turn prices only decline slowly when costs decline.

"We want to break this mechanism," she said, adding the measure would be implemented through a change to antitrust law.

Under the plans, which are modelled on a mechanism used by Austria since 2011, petrol stations would be allowed to raise prices no more than once a day, but no such limit would apply to lowering prices.

Prices for diesel and petrol have been soaring since Israel and the US began to attack Iran on February 28.

Tehran has responded by striking oil-rich Gulf states that host US military bases and blocking the Strait of Hormuz, a key artery for global oil supplies.

German politicians have accused petrol stations and oil suppliers of taking advantage of the situation and rising prices prematurely.

Petrol station operators have blamed oil companies, saying they have no influence on the prices at the pump which are set by the companies.

Petrol and diesel prices were up by €0.017 ($0.0197) on average in Germany on Tuesday, according to the ADAC motoring organization.

However, prices dropped by a few cents again on Wednesday, in what might be a sign of potential easing, as Reiche announced Germany would release some of its national oil reserves in response to a request by the International Energy Agency to alleviate the market.