German auto club calls for scrapping noon fuel price rule

Germany’s automobile club ADAC has called on the federal government to scrap a rule that allows petrol stations to raise gasoline and diesel prices only once a day, at noon.

The regulation has been in force since April 1 and was intended to curb frequent price fluctuations and improve conditions for consumers. However, the ADAC says it has failed to bring down fuel prices and has instead contributed to wider price differences during the day.

Under the current system, petrol stations can increase their prices only at 12:00, while reductions can be introduced at any time. ADAC said stations have increasingly set higher prices from midday into the evening, meaning motorists who need to refuel later in the day can face significantly higher costs.

“The rule has failed to achieve its goal from the consumer perspective. It should therefore be abolished,” said Peter König, ADAC vice president for transport.

The Leibniz Centre for European Economic Research, known as ZEW, has also found that the one-time daily price increase has resulted in higher average retail fuel margins, while reducing the number of daily price adjustments.

The ADAC and ZEW say the system has created pronounced price distortions. ADAC data from more than 14,000 German filling stations showed that fuel prices tend to be at their lowest shortly before noon, before rising sharply at 12:00.

The ADAC has also called for a temporary reduction in the government’s energy tax as fuel prices rise amid the worsening situation in the Middle East. The group said a proposed price cap could help contain sharp price spikes, but would not by itself secure a sustained reduction in fuel costs.

The German government has separately announced a temporary €0.17-per-litre reduction in gasoline and diesel taxes from October 1 through the end of 2026, while also planning negotiations with the oil industry on a fuel price cap from January 2027.

By Tamilla Hasanova