Germany ready to release oil from strategic reserves amid escalating Persian Gulf conflict
Clean Energy Wire / Handelsblatt / Deutschlandfunk
Germany has agreed to release 2.4 million tonnes of oil from its strategic reserves as part of a larger effort to be recommended by the International Energy Agency (IEA) to cushion price increases resulting from the conflict in Iran and the wider Persian Gulf region.
“The energy supply in Germany is secure, but we are seeing considerable price fluctuations and volatility on the markets,” said economy minister Katherina Reiche during a press conference. “The situation regarding oil supplies is tense because the Strait of Hormuz is impassable,” she said. Germany would therefore do its part and respond to an expected request by the IEA for countries around the world to release a total of 400 million barrels from their reserves. The minister expected the process to take at least several days.
The strategic oil reserve is a government-mandated stockpile of crude oil and petroleum products that is intended to secure supplies in times of crisis and can limit price increases, reported public broadcaster Deutschlandfunk. Since the 1970s, petroleum companies in Germany have been required to store enough supplies to last at least 90 days without new imports.
Reiche also said that the government had agreed to introduce regulations that would prohibit petrol station operators from increasing fuel prices several times per day. Rapidly rising oil and gas prices following the US-Israeli attack on Iran have ignited a new debate about energy price subsidies in Germany. Petrol and diesel prices in the country rose above two euros per litre for the first time since 2022, creating pressure on the government to protect consumers.
However, high fuel prices also provide an incentive for people to consider switching to climate-friendly alternatives, for example in transport. Automotive websites have registered a noticeable increase in enquiries about electric cars (EVs) in recent days, reported Handelsblatt. However, consumers were still waiting to see how the situation would evolve before deciding on a new vehicle.