German petrol stations allowed just one price rise a day in bid to curb Iran war surge

By Christian Kraemer

BERLIN, March 26 (Reuters) - German lawmakers on Thursday approved initial measures to curb fuel prices that have surged in the wake of the Iran war, including one to limit petrol stations to just one price rise a day.

From early April, petrol stations will only be allowed to increase prices at midday (1100 GMT), but will be able to make reductions at any time.

Breaches could be punished with fines of up to 100,000 euros ($108,000) under the legislation passed by the lower house of parliament.

The bill, backed by the ruling conservatives and Social Democrats, as well as the Greens, also tightens antitrust rules in an effort to increase transparency in fuel pricing.

Diesel prices have risen to well above 2 euros per litre from around 1.75 euros in many areas since the start of the conflict. Economists expect inflation to run closer to 3% this year than the 2% previously forecast.

MORE MEASURES TO COME

German Economy Minister Katherina Reiche said she was also open to a temporary further increase in the commuter allowance, a tax deduction for travel between workers' homes and their main place of work.

Other possible additional measures being considered include lowering road tolls on trucks and reducing the VAT rate at petrol stations.

The Social Democrats have also proposed a windfall profit tax for energy companies, as well as a price cap at gas stations.

In a survey by DMB, which represents Germany's bedrock small- and medium-sized firms, more than 90% of the 450 respondents complained about the increases in energy and fuel costs since the start of the Iran war.

Around one-third of the companies reported a price increase of more than 30%, with more than half of respondents speaking of a significant or even critical burden on ongoing operations.

Diesel costs rose 28% in March, Dirk Engelhardt, from the German Association for Road Haulage, Logistics and Disposal, said on Thursday.

Diesel accounts for 30% of total costs. "That means our member companies really need to raise freight rates by 8% to 10%," he said.

For some providers, this was a threat to their survival, he said. "Margins are very low," Engelhardt added.