German petrol prices surge again despite new government restrictions

German fuel prices rose again at midday on Thursday, one day after a rule came into force limiting petrol stations to hiking prices once a day, as consumer experts warned that the new regulation is unlikely to bring down costs for motorists.

"At the moment, it doesn't look as though the new rule will actually make filling up any cheaper," Ramona Pop, head of the Federation of German Consumer Organizations, told dpa.

Indeed, the average daily price for a litre of diesel fuel jumped to an all-time high on Wednesday, reaching €2,327 ($2.67) as the new rule came into force, according to figures by the ADAC motoring organization published on Thursday.

The average price for a litre of Super E10 petrol also rose on Wednesday, reaching €2.129, the highest level recorded so far this year, according to ADAC.

On Thursday, the average price of diesel rose again significantly, climbing from €2.297 per litre at 11:45 am to €2.415 at 12:15 pm, while Super E10 rose from €2.10 to €2.198, the ADAC said.

In response to soaring oil prices as a result of the war in the Middle East, the German government passed a bill last week to restrict petrol stations to raising prices once a day - at midday - to limit price fluctuations and ensure greater transparency. Price reductions will still be allowed at any time.

Many petrol stations increased prices significantly when the rule took effect on Wednesday.

Consumer expert Pop said that, under the new restrictions, it appeared that prices spike at midday and then fall back over the course of the day and the following morning.

"Consumers can save money by filling up in the late morning," she said.

"However, this time is inconvenient for most working people," she noted, calling on the government to quickly reassess the rule, including the timing of price adjustments.

The ADAC criticized Wednesday’s price rises as unreasonable, given that the price of crude oil fell between March 31 and April 1.

Diesel prices surge

Diesel prices are skyrocketing in particular because the fuel is essential to several sectors such as logistics, agriculture and construction.

Lorries, construction machinery, tractors and many freight trains run on diesel.

While petrol car owners have the option of driving less to save money, farmers have to plough their fields and lorry drivers deliver their cargo regardless of the price rises.

Adjusted for inflation, diesel in Germany is still cheaper than it was four years ago, when consumer prices surged in 2022 and 2023 due to the war in Ukraine.

Economists are already warning of serious economic consequences, not only for Germany but for the whole world, if US President Donald Trump fails to end the war against Iran.

According to figures from the International Energy Agency (IEA), global daily oil consumption stands at just over 100 million barrels.

Due to the war in Iran, the British research institute Oxford Economics estimates that around 10 million fewer barrels are available on the world market each day. 

Should the war last for six months, oil could become so scarce by late summer that emerging economies in particular would have to ration their consumption, the institute reported. In this scenario, the institute predicts a global recession.