Brandenburg premier calls for fuel price cap as Germany's petrol prices stay high amid Middle East crisis

The ongoing uncertainty in the Middle East has continued to drive up gas station prices over the weekend. On Saturday, E10 super gasoline cost an average of €2.27 per liter nationwide. According to data from the fuel price portal "Tankerkönig," drivers had to pay nearly €2.40 for diesel. Regionally and at specific times, prices were significantly higher.

Sharp Price Jump Triggered by Saudi Pipeline Shutdown

A particularly sharp price jump at noon on Saturday was triggered by reports that Saudi Arabia would also have to shut down a major pipeline following Iran's blockade of the Strait of Hormuz and the increasing threat to the Bab al-Mandab strait posed by the Houthi militia in Yemen. The East-West pipeline, capable of transporting large volumes of oil from the Persian Gulf to the Red Sea, was preemptively shut down after attacks on the line in the Riyadh and Medina regions. A further reduction in Saudi exports could cause oil prices to rise even more.

Some Easing on Sunday Amid Diplomatic Efforts

On Sunday, there was some easing in fuel prices, likely because planned talks in Oman came into focus. Iran and states bordering the Persian Gulf intend to discuss the contested Strait of Hormuz on Monday. Foreign ministers from Iran, Iraq, Oman, Kuwait, Bahrain, Qatar, the United Arab Emirates, and Saudi Arabia are expected to participate.

Political Calls for a Fuel Price Cap

From the perspective of Brandenburg's Minister-President Dietmar Woidke, high fuel prices must be quickly capped.

"We urgently need a fuel price cap," the SPD politician told the German Press Agency (dpa). "It cannot be that oil companies reap extra profits while millions of commuters despair over excessively high fuel prices."

He emphasized: "No one should profit from the distress of others. Justice must also prevail at the gas pump."

The head of government pointed to consumer relief measures in other countries:

"Our neighbors have long shown us how the population can be relieved at the pump. In Luxembourg, Poland, Belgium, and also in the Czech Republic, maximum prices are regularly adjusted flexibly according to market conditions," said Woidke. "This promises lower fuel prices for all consumers and provides planning certainty."

Broader Economic Impact

The war involving Iran has driven up fuel prices for months. Amid rising oil prices, they increased again in recent days. Fighting across the entire Middle East intensified over the past two weeks.

• Brent crude oil has risen almost 80 percent since the beginning of the year.
• Prices for European natural gas and freight rates for oil tankers have also surged sharply.
• Refined products such as diesel became even more expensive, exacerbated by the consequences of the war between Russia and Ukraine.

At the end of June, the fuel tax rebate expired without replacement. Despite the noon rule regarding price increases at gas stations, fuel prices continue to rise. Within the SPD, there are increasingly voices demanding caps. Federal Economics Minister Katherina Reiche (CDU) currently rejects capping fuel prices.

In June, Brandenburg's Transport Minister Robert Crumbach (SPD) proposed that the federal government legally limit the midday price jump to a maximum of five percent.

Expert Warning: Further Price Increases Expected

According to economic expert Monika Schnitzer, the military offensive by the Iran-aligned Houthi militia in Yemen will lead to further rising consumer prices in Germany.

"Contrary to hopes, the situation is not easing but rather worsening," Schnitzer told the "Kölner Stadt-Anzeiger." "This will also be noticeable in prices at the gas pump and overall consumer prices, burdening us all."

At the same time, the chairwoman of the Council of Economic Experts warned against responding to the intensifying situation in the Gulf with state relief measures.

"The best response is not to call for new state aid, but for greater independence from fossil fuels," said Schnitzer. "Everyone can contribute to this when purchasing their next car or heating system."