German parliament approves measures to combat high gas prices

The German parliament (Bundestag) approved an initial package Thursday of measures to fight high gas prices due to the war in Iran.

It includes stricter rules on price increases at gas stations as well as a tightening of antitrust laws.

For a limited time, price increases will be permitted only once a day, at noon. The move is geared toward preventing frequent price spikes at gas stations. Price reductions are permitted at any time. Violations will be punishable with fines of up to €100,000 ($115,511).

In addition, antitrust laws are to be strengthened to ensure greater transparency in pricing. In the event of sharp price increases, the burden of proof will be reversed in the future.

Companies in the petroleum industry will have to demonstrate that price increases are objectively justified. The Federal Cartel Office will also be given the authority to quickly review and halt price markups in the wholesale sector.

The bill must still pass the upper house of parliament, the Bundesrat, on Friday. The package is then set to take effect by early April at the latest and will be reviewed after one year.