Germany has authorised the partial release of its national oil reserves to mitigate the sharp rise in oil and fuel prices triggered by the ongoing conflict in Iran, according to multiple government sources and media reports.
The decision, confirmed earlier today, follows co-ordinated discussions among the G7 nations and the International Energy Agency (IEA), aiming to stabilise global energy markets amid escalating tensions in the Middle East.
In addition, petrol stations in Germany should only be allowed to increase their fuel prices once a day.
The move comes as crude oil prices have surged due to disruptions in supply chains following Iran’s attacks. That has led to fears of blockades in key shipping routes such as the Strait of Hormuz.
Brent crude has climbed above $120 (€103) per barrel in recent days, pushing up petrol and diesel costs at German pumps by more than 20 per cent since the conflict intensified.
Economy minister Johanna Reiche (CDU) officially confirmed the release this morning, stating it is a precautionary measure to ensure supply security and dampen inflationary pressures on consumers and industry.
Germany’s strategic petroleum reserves, managed by the Hamburg-based Erdölbevorratungsverband (EBV), a public-law entity, are legally mandated to cover at least 90 days of national consumption in the event of severe supply disruptions.
These reserves total approximately 110 million barrels of crude oil and 67 million barrels of refined products, equivalent to around 24 million tonnes.
The EBV oversees storage in underground caverns, tanks and other facilities across the country, ensuring compliance with IEA and European Union obligations.
According to a report in the Handelsblatt, Germany will now release 19.5 million barrels, although no official statements about the numbers have been released yet.
The partial release requires a legal ordinance from the Federal Ministry for Economic Affairs and Climate Action.
This marks the fifth time Germany has tapped into these reserves, with previous instances occurring during the 1991 Gulf War, the 2011 Libyan conflict, the 2005 Hurricane Katrina aftermath and, most recently, in 2022 amid start of the Russia-Ukraine war.
The decision was preceded by a virtual meeting of G7 finance and energy ministers on March 9, where participants, including Germany’s finance minister Lars Klingbeil (SPD), expressed openness to utilising reserves but emphasised the need for a co-ordinated approach.
The IEA, which works with its 32 member states holding a collective 1.2 billion barrels in emergency stocks, has proposed a global release of up to 400 million barrels to counter the price shock.
That would significantly exceed the previous maximum of 182 million barrels at the start of the Ukraine war.
G7 energy ministers stated today that they are “prepared” to act jointly with the IEA, although no immediate full-scale release was announced, with some ministers such as France’s finance minister Roland Lescure deeming it premature.
Experts warn that while the release could provide short-term relief — potentially lowering prices by 5 per cent to 10 per cent —i t is not a long-term solution and risks depleting buffers needed for prolonged crises.
