Will any petrol stations pay for violating Germany’s price rules?

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Drivers who faced soaring costs during Germany’s fuel crisis may be wondering whether companies that broke pricing rules will face consequences. So far, investigations remain limited.

When fuel prices surged following the outbreak of the Iran war, the German government introduced emergency measures designed to make prices more predictable and transparent.

Under the so-called ’12 o’clock rule’, introduced on April 1st, petrol stations were only allowed to increase fuel prices once a day, at noon. The measure was intended to curb the sharp and frequent price rises seen during a period of geopolitical turmoil.

The rule coincided with a temporary fuel rebate, in force from May 1st to June 30th, which was supposed to reduce prices by around 17 cents per litre.

But evidence gathered by SWR suggests many petrol stations may have breached the noon-time pricing rule. Since April, more than 240,000 suspected violations have been recorded. In July alone, around 1,100 petrol stations allegedly increased prices more than 5,500 times outside of the permitted window.

While some of these cases may have been caused by technical issues, the broadcaster also found examples that raise more serious questions.

READ ALSO: Fuel prices jump in Germany as energy tax discount ends

Investigations finally begin

Despite the scale of the suspected breaches, most German states have yet to launch formal investigations.

Only a handful of states, including Lower Saxony, Mecklenburg-Western Pomerania, Berlin and Saarland, told SWR they were actively pursuing cases.

Hamburg’s antitrust authority has also confirmed it is analysing data supplied by the Federal Cartel Office, stressing that suspected violations must be examined individually before any conclusions can be drawn.

Meanwhile, the Federal Cartel Office itself is pursuing a broader investigation into fuel pricing by refinery operators. The stated objective is to determine what costs the operators actually incurred, whether the prices they charged can be justified on that basis and whether there is evidence of violations of competition law.

The President of the Cartel Office has cautioned that this is likely to be a lengthy process.

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Critics say enforcement is too weak

Politicians, consumer groups and industry experts have increasingly questioned whether current enforcement efforts are adequate for the scale of the problem.

Commenting on the issue, deputy leader of the SPD parliamentary group and head of the federal government’s gas prices task force, Armand Zorn said, “Laws are only as effective as their enforcement.”

Jochen Ott, SPD opposition leader in North Rhine-Westphalia, was even more blunt. Speaking to WDR, he argued that it was unacceptable for motorists to receive parking fines while petrol station operators appeared to face no consequences for breaking the rules.

READ ALSO: How to save money on fuel in Germany as prices hit all time high

Critics have also questioned whether the rule achieved its intended purpose at all. The ADAC (Germany’s largest motoring group) has called for a review of the measure, while economists and consumer advocates argue that it failed to lower prices.

One earlier study concluded that the rule actually increased oil company profit margins.

Will anyone face meaningful penalties?

In theory, violations can result in fines of up to €100,000. In practice, penalties imposed so far appear far lower.

For example, the state of Lower Saxony began issuing fines of €55 per violation in July, saying this was the highest possible amount that could be imposed quickly in order to begin enforcement.

The ADAC is unconvinced. Spokesperson Katharina Lucà told ARD: “At €55 per case, it’s questionable whether that’s a strong enough deterrent.”

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Zorn has also argued that lawmakers created the possibility of much tougher sanctions for a reason. “Anyone who repeatedly circumvents the 12 o’clock rule is not committing a minor offense,” he said. “They are undermining consumer trust.”

For now, investigations are expanding, but authorities acknowledge that examining hundreds of thousands of suspected breaches will take time.

A further complicating factor is the fact that nearly 90 percent of deviations recorded by the Federal Cartel Office occurred within 20 minutes of the permitted noon window, suggesting that many cases may not represent deliberate attempts to breach the rules.  

Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: thelocal.de