Germany Limits Gas Price Hikes to Once Daily Amid Rising Energy Costs

Germany has implemented a new rule limiting gas stations to one price increase per day at 12 p.m. to address the rapid fluctuations in fuel costs driven by the ongoing U.S.-Iran conflict and supply disruptions. The regulation, announced by the Federal Government, is designed to counter the 'rocket and feather effect' where prices rise swiftly with crude oil increases but fall slowly when oil prices drop. Previously, fuel prices were changing as frequently as 22 times a day, exacerbating consumer concerns over volatile energy costs. The government also plans legal amendments to strengthen enforcement against companies engaging in abusive pricing practices. Violations of the new rule could result in fines of up to 100,000 euros ($116,000). This measure is part of a broader European effort to mitigate the impact of rising fuel prices. The U.K. has introduced a £53 million support package for vulnerable families, while Denmark's energy minister has urged citizens to reduce energy consumption. Austria and Hungary have also imposed fuel price limits, and France is conducting inspections to prevent price gouging. Oil prices have surged past $100 per barrel due to the closure of the Strait of Hormuz, a critical oil passage. West Texas Intermediate (WTI) futures fell 2% to above $98 per barrel, and Brent crude futures dropped 2% to over $101 per barrel. The International Energy Agency (IEA) has warned that the energy crisis will worsen in April, following an agreement among 32 member countries to release 400 million barrels of oil from emergency stockpiles. IEA CEO Fatih Birol noted the agency is considering further releases to address the supply disruption.