As Deutschlandfunk reports, the introduction of the 12 o'clock rule for price increases at gas stations has brought additional profits to the mineral oil industry, according to a survey. The regulation, which was introduced as part of the energy crisis, was actually intended to ensure more transparency and competition. Instead, gas station operators used the opportunity to increase their profit margins, the study by the economic research institute says.
The 12 o'clock rule stipulates that prices at gas stations may only be increased once a day, at 12 noon. Price reductions, on the other hand, are permitted at any time. The aim of the regulation was to give motorists more planning security and to reduce price jumps during the day. However, the study now shows that the mineral oil companies strategically used the regulation to increase their margins.
According to the researchers, the average profit margins of gas stations increased significantly after the introduction of the regulation. Particularly in the morning hours, before prices could be raised at 12 noon, margins were above average. The study concludes that the 12 o'clock rule did not lead to lower prices for consumers, but rather to higher profits for the mineral oil industry.
The results of the study cast a critical light on the effectiveness of the regulation. Consumer advocates had previously criticized that the 12 o'clock rule is not sufficient to lower prices at the pumps. Instead, they call for stronger regulation of the market and more transparency in price formation. The mineral oil industry, on the other hand, defends the regulation and points to the increased planning security for customers.
The study by the economic research institute is based on an analysis of price data from 2022 and 2023. The researchers examined price developments at around 1,000 gas stations in Germany. The results show that profit margins increased by an average of 0.5 cents per liter after the introduction of the 12 o'clock rule. Extrapolated over the entire year, this results in additional profits for the mineral oil industry in the millions.
The authors of the study recommend reconsidering the 12 o'clock rule and, if necessary, replacing it with other measures. They suggest stronger regulation of prices at gas stations or the introduction of a price cap. Shortening the time window for price increases could also promote competition and reduce gas station margins.
The federal government introduced the 12 o'clock rule in March 2022 in response to the sharply increased energy prices. It was intended to prevent mineral oil companies from raising prices several times a day and thus unsettling consumers. The regulation was initially temporary but has been extended several times. Whether it will remain in place beyond 2024 is still unclear.
