Bavaria investigates petrol stations over noon price rule

Bavaria is investigating possible violations of a rule that allows petrol stations to raise prices only once a day, at noon, BR24 reports. The scale of the checks remains unclear, while the Bavarian Economics Ministry and the ADAC have criticised the regulation.

The Bavarian State Office for Weights and Measures is analysing extensive datasets to determine whether petrol station operators have complied with the rule, which has been in force since April.

The Bavarian Economics Ministry told BR24 that it has not yet been decided how possible violations will be pursued or how much work the checks will require. The effort will depend on how enforcement is organised, the ministry said. It added that administrative offence proceedings can be “very complicated and extensive” in individual cases.

Other states have begun enforcement

Other German states are further ahead. According to the Federal Cartel Office, Lower Saxony has been carrying out checks since May and has already penalised violations. In July, about 1,900 warning fines were issued for breaches in April, affecting around 250 petrol stations.

The Bavarian Economics Ministry has called the rule “bureaucratic madness”. In response to a BR24 inquiry, it said that even effective enforcement would not lower petrol prices. The ministry said the regulation would create “only effort and no benefit”. Economics Minister Hubert Aiwanger of the Free Voters has repeatedly opposed the rule and instead called for the abolition of carbon pricing to reduce the burden on motorists.

ADAC reports price increases of up to 30 cents

The ADAC had warned before the rule was introduced that oil companies might build larger increases into their noon prices to protect themselves against further market changes. According to the motorists’ association, data show sharp price jumps in some cases, with increases of up to 30 cents at noon. Prices subsequently fall again, but not by the same amount, according to the ADAC.

The association does not regard the rule as a tool for lowering fuel prices. It mainly creates clarity about when prices may be increased, the ADAC said.

Economist says price changes have become more predictable

Toker Doganoglu, a competition economist at the University of Würzburg, said the rule has nevertheless produced a benefit. Before it was introduced, petrol stations sometimes changed their prices more than 20 times a day. Since then, the number of daily price changes has fallen significantly. It remains unclear whether motorists are paying less as a result.

Doganoglu pointed to Austria, where a similar rule has been in place for years. Price fluctuations during the day are smaller there, although it is unclear whether the rule alone is responsible. One important factor is whether motorists have changed their habits and are filling up more often at cheaper times, he said.

As long as the rule is in force, violations must be pursued, Doganoglu said. Without sanctions, companies would have little reason to comply. About 90 percent of recorded deviations occur between 11.50 a.m. and 12.10 p.m., directly around the permitted price increase. Technical problems may be responsible, or operators may wait to see how neighbouring competitors set their prices before adjusting their own. Authorities often find it difficult to determine afterwards why a price change was delayed.

Queues form before noon

The effect is also visible at petrol stations. An employee at a station in southwestern Munich told BR24 that queues regularly form shortly before noon, with customers sometimes waiting 20 to 30 minutes. Staff must serve many customers within a short period, while the shop and bistro keep extra goods available between 11 a.m. and noon.

The rush can sometimes lead to arguments. Customers have insulted one another at the pumps, and in isolated cases fuel nozzles have been pulled from people’s hands.