Coin Press - Germany targets oil firms to prevent wartime price gouging

Global oil prices have surged as the Middle East war, pitting allies the United States and Israel against Iran, has led to the near total closure of the Strait of Hormuz to oil and gas tankers.

In Germany, "it is certainly notable that prices at gas stations have risen more sharply than the European average," Economy Minister Katherina Reiche told a press conference.

"The oil industry has not provided a particularly convincing explanation for this, and that is why we will take action."

The Federal Cartel Office watchdog will be given more powers "to quickly investigate and stop price markups in the wholesale sector," she said.

The burden of proof will be shifted to energy companies, meaning they will have to prove they have acted lawfully by explaining how they came up with prices.

Currently, the cartel office has to provide evidence when they believe something is wrong with prices.

Reiche also confirmed that petrol stations will in future only be allowed to raise prices once a day, a measure she first mentioned last week.

A law introducing all the new measures should be passed by the end of this month or early April, Reiche said.

Germany is among countries tapping into its strategic oil reserves as part of the International Energy Agency's biggest-ever release -- 400 million barrels -- to combat rising global prices.

Reiche also said the government was considering setting up a strategic gas reserve for emergencies, with experts examining the idea and talks planned with potential operators.

Officials hope it will be up and running "as early as possible so that it can be in place by next winter", Reiche said.

Ng.A.Adebayo--CPN