Germany Proposes Strict New Rules for Oil Price Hikes

Germany's government is drafting a bill to require oil companies to justify price increases at service stations in response to a U.S.-Israeli war on Iran. The legislation, allowing only one price change daily, aims to control rising gasoline prices and could be enacted this week.

The German federal government is taking steps to control gasoline price spikes by drafting a bill that compels oil companies to provide prior justification for any price increases at service stations, a government spokesperson disclosed on Sunday.

This legislative move arises following a significant surge in gasoline prices after the escalation of a U.S-Israeli conflict with Iran over two weeks ago, highlighting the need for regulatory intervention.

The proposed bill, which limits service stations to changing prices only once daily at noon, has been sent for inter-ministerial consultation and parliamentary review. It is set for potential adoption this week without requiring Bundesrat approval and will undergo review after summer.

(With inputs from agencies.)