Bundescartel Office President Confirms “Rocket and Spring Effect” in Gasoline Prices
Andreas Mundt, President of the German Federal Cartel Office, has confirmed the phenomenon known as the “rocket and spring effect” observed in gasoline prices. This means that prices at the pump tend to rise rapidly when crude oil prices increase, but the corresponding decrease in prices is often delayed. Mundt stated in interviews with RTL and ntv that their recent report substantiated this effect, potentially validating the perceptions of many drivers.
Mundt attributed this behavior to the margin management strategies of fuel providers. He explained that oil companies often respond quickly to rising costs to protect their profit margins, while reacting more slowly to price decreases to maintain those margins. This, according to Mundt, may indicate that competition within certain segments of the market is not as intense as it could be.
However, the Cartel Office head emphasized that this pattern does not automatically imply illegal collusion. He noted that investigations over many years have yielded no evidence of such agreements, highlighting the high transparency of the market where companies are aware of pricing at all gas stations across Germany. The Cartel Office also found no significant price discrepancies between independent and major fuel station chains.
The differing price movements observed between diesel and E10 gasoline remained somewhat unclear, Mundt admitted. He cited factors such as refinery situations and weather conditions, like low water levels on the Rhine River, as potential contributing elements. The Cartel Office has already conducted a comprehensive sector investigation into the wholesale fuel market and continues to pursue market transparency measures.
Despite these dynamics, Mundt assured consumers that they are not without recourse. He recommended utilizing price comparison apps and pointed out that gasoline prices typically see a dip between 5 PM and 8 PM, with morning hours between 7 AM and 8 AM generally being the most expensive. He advised consumers to identify consistently cheaper stations and to leverage their purchasing decisions to exert competitive pressure on fuel providers. Mundt concluded by encouraging consumers to utilize the available tools to influence market behavior.