September 1965

Introduction of Compulsory Stockpiling

Compulsory stockpiling is introduced in Germany on September 14, 1965 to ensure that enough oil will be available for domestic use in times of crisis. Building such stockpiles does not present a problem for the major oil companies, as they have sufficient tank terminals. For the independent oil trading companies, however, this constitutes an unreasonable capital commitment.

In 1967 the company Tampimex (a member of AFM) resolves to challenge this law in court and subsequently takes the matter to the Federal Constitutional Court in Karlsruhe. Because it is clear that the case will extend over several years, Marquard & Bahls (also an AFM member) also sues to bring about a suspension of the compulsory stockpiling for the duration of the trial. Marquard & Bahls wins the case. As a precaution, Marquard & Bahls uses the suspension period to secure adequate tank space to accommodate the compulsory stockpiling in Germany. Extending the tank terminal capacity proves to be the right move.