The oil and fuel industry has stated that it will not participate in a voluntary fuel price cap, citing concerns related to competition and cartell law. This position was detailed in a letter sent on October 21st to State Secretary for Economic Affairs Frank Wetzel and State Secretary for Finance Steffen Meyer, according to the magazine Politico.
The executives of several industry associations wrote that a coordinated agreement between associations and competing companies on a voluntary cap could be interpreted as an “unacceptable price arrangement.” They elaborated that, for legal prudence, the participating associations are unable to coordinate or take part in such an agreement.
The pushback comes amidst the Federal Ministry for Economic Affairs’ ongoing preparations for a planned, temporary fuel price cap. This measure was approved in September as part of a government relief package and is scheduled to take effect no later than January 1, 2027. During an initial discussion with the industry on October 19th regarding the proposed price ceiling, the Ministry for Economic Affairs presented a voluntary cap as a potential option.
However, the associations are not only rejecting this voluntary solution but are also opposing both regional and nationwide price caps. According to the mineral oil associations, such caps carry significant risks. In their letter to the state secretaries, they concluded that “overall, we do not see a model for a price ceiling that appears suitable for the German fuel market.”
