Germany, through Finance Minister Katerina Reiche, is to participate in an internationally coordinated release of its strategic reserves to limit the continuous price increases on international markets since the start of the Iran war.
Germany maintains strategic oil reserves stored in northern Germany, sufficient for at least 90 days, to compensate for supply disruptions. According to the Ministry of Finance and Energy these oil reserves could compensate for a complete stoppage of all imports for three months.
The German Petroleum Storage Association (EBV) is responsible for the storage of crude oil and petroleum products (gasoline, diesel, kerosene). As mentioned by a representative of the Ministry of Finance, the German strategic reserves of crude oil and its derivatives currently amount to 19.5 million tons.
According to government sources cited by Handelsblatt, the International Energy Agency, which held an emergency meeting yesterday, is proposing to its member states the release of a total of up to 400 million barrels of crude oil. This would significantly exceed the previous cap of 182 million barrels set at the start of the war in Ukraine in 2022. The 400 million barrels is roughly the amount transported in 20 days through the Strait of Hormuz before the war.
The other measure concerns fuel. According to the minister, fuel price increases at gas stations will only be allowed once a day. To reduce the financial burden on motorists and businesses, the frequency of price changes at gas stations should be limited. Under the “Austrian model” gas stations will then be allowed to increase their prices only once a day, the minister said, according to Reuters.
Price reductions, on the other hand, will be allowed at any time. According to the German minister, an amendment to the antitrust legislation will be required and they are now examining how quickly the relevant laws can be changed and how quickly the plan can be introduced into a legislative process. This will be discussed in the evening at the regular meeting of the leaders of the parties of the governing coalition in the chancellery.
Later in the afternoon Chancellor Mertz was to participate in a teleconference with heads of state and government of the G7 group to examine, among other things, the global dimensions of the energy crisis.
