Coordinated moves to curb oil and fuel-price spikes emerged Wednesday in Germany and other countries after attacks on Iran and escalating conflict in the Gulf pushed prices higher.
The International Energy Agency (IEA) asked member countries to free up a total of 400 million barrels from national reserves. “The oil market challenges we are facing are unprecedented in scale, therefore I am very glad that IEA member countries have responded with an emergency collective action of unprecedented size,” IEA Executive Director Fatih Birol said.
Germany’s Economy Minister Katherina Reiche said Germany would take part and contribute about 2.4 million metric tons of oil. Reiche said there was no immediate shortage in Germany but that releases were needed because supply disruptions were occurring elsewhere. Finance Minister Lars Klingbeil had signaled openness to tapping reserves a day earlier.
Austria said it would limit fuel-station price increases to once per day and join international plans to release reserves. Japan announced it would not wait for a formal IEA decision and would begin releasing strategic stockpiles as early as March 16, Prime Minister Sanae Takaichi said. French Economy Minister Roland Lescure described the announcements as part of an “extremely coordinated approach.” Spain’s Energy Minister Sara Aagesen noted the IEA-recommended release would be more than twice the size of the release after Russia’s full-scale invasion of Ukraine in 2022.
After G7 ministers met Tuesday, the IEA was tasked with weighing the benefits and downsides of reserve releases and advising EU and Western governments. Reuters cited IEA sources saying an initial tranche of 100 million barrels could be released as part of the broader 400 million-barrel plan.
Oil prices rose sharply after the attacks and fighting in the Gulf disrupted shipments through the Strait of Hormuz. Prices briefly topped $100 per barrel early Monday but were around $90 a barrel for Brent crude on Wednesday, up from roughly $68 a month earlier. Fuel prices at filling stations have risen in many countries.
Germany plans to follow the “Austrian model” and restrict how often petrol stations can raise prices, allowing only one increase per day while placing no limit on how often stations may lower prices. Reiche said the measure aims to counter a “rocket and feather” effect—rapid price rises when crude moves up and slow declines when it falls. Implementing the cap will require changes to German cartel laws; the government will seek an existing legislative vehicle to speed the process but gave no timeline.
Germany’s strategic reserves are overseen by the Petroleum Stockpiling Association under the Federal Ministry for Economic Affairs and Energy. Germany is required to hold reserves equivalent to 90 days of net oil imports. When selling stocks, authorities must charge market prices. Legally, reserves may be released to address disruptions to physical supply; releases intended primarily to lower prices are not permitted.
By comparison, after Russia’s 2022 invasion of Ukraine, 183 million barrels were released from national reserves in two tranches, with Germany contributing almost 6.5 million barrels. The current coordinated move is intended to ease immediate pressure on supply and limit further price shocks as tensions in the region continue. Edited by Richard Connor
