Bavarian Governor Questions Effectiveness of 12-Hour Fuel Price Rule

Bavarian Governor Markus Söder is questioning the effectiveness of Germany's 12-hour fuel price rule, suggesting it may not be working as intended.

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One should also urgently check again whether this 12-hour rule really works. My feeling is that it doesn't work very well and also has no great effect.

Amidst soaring fuel prices, exacerbated by the Iran conflict and the blockade of the Strait of Hormuz, Söder stated in an ARD interview that the rule, which limits price increases to once a day at 12 p.m., should be urgently reviewed. He expressed doubt about its efficacy and impact.

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But if this continues for months, then one must think again, for example, whether the high CO2 pricing can remain.

Söder indicated that a swift reintroduction of a fuel discount, similar to previous measures, is unlikely. However, he proposed that if high prices persist for months, Germany should reconsider its high CO2 pricing. He also noted that commuters would receive compensation through an increased commuter allowance, offsetting some of the current overpayments.

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And therefore I believe that a lot of money will come back anyway.

Open to a windfall tax on oil companies, Söder said he would be receptive if it were clearly demonstrable. He also mentioned considering other measures like a fuel price cap. Ultimately, Söder's primary hope remains for a swift de-escalation and reopening of the Strait of Hormuz, which he believes would naturally regulate fuel prices.

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I am generally open to it, if it would be recognizable.