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Germany’s Noon-Only Fuel Rule Fails to Cool Prices as Diesel Sets Another Record

Sharp noon jumps under the new rule have triggered scrutiny of pricing.

Overview

  • Diesel averaged €2.346 per liter on Thursday, a new high after Wednesday’s €2.327 record, according to ADAC data.
  • Since Wednesday, stations may raise prices only once at 12:00, and ADAC recorded steep noon spikes on Thursday of about 9.5 cents for Super E10 and roughly 11.7 to 11.8 cents for diesel.
  • ADAC and consumer groups say firms are adding a risk premium because they can raise only once daily, and they urge the Bundeskartellamt to act as violations of the rule can draw fines up to €100,000.
  • The coalition is weighing relief options that include a higher commuter allowance, a new cash credit called Mobility Money, temporary cuts to energy taxes, a fuel price cap, or a windfall tax, with SPD’s Armand Zorn backing a cap and levy and Economy Minister Katherina Reiche opposing a windfall tax.
  • Economists and the Finance Ministry note VAT receipts rise with pump prices but overall tax income may not, since households often cut other spending when fuel costs jump.