""The reform was successful in increasing price transparency but failed to reduce price levels. If anything, it had the opposite effect.""
""Low-price windows become more salient and easier to anticipate. However, this simplification comes at a cost: prices are systematically elevated during the midday period.""
Price controls at German petrol stations aimed at limiting fuel price increases have backfired, leading to higher average costs. The law mandated price hikes only once daily, but economists found that it actually raised retailers' margins by five to six cents per litre. Prices now spike at noon and decrease gradually, reducing opportunities for consumers to find cheaper petrol. While the reform improved price transparency, it ultimately failed to lower prices, resulting in systematically elevated costs during midday hours.
Read at The Local Germany
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