Status: 03/08/2022 12:52 p.m
Filling up the tank at the pumps is becoming more and more expensive for German drivers. Today, a liter of E10 petrol costs more than two euros for the first time. Diesel is now even more expensive than petrol.
Petrol and diesel prices have reached new highs at petrol stations in Germany. The effects of the Ukraine war continue to cause great nervousness on the market.
According to ADAC, E10 premium petrol cost an average of EUR 2.008 per liter yesterday, and EUR 2.032 for diesel. Both values have thus reached another record level. On an annual basis, the increase in fuel prices is enormous: on average in March 2021, diesel cost 1.315 euros per liter, while Super E10 cost 1.454 euros.
Oil prices as a driver
Market reporters see the continuing rise in oil prices, which were at multi-year highs as a result of Russia’s war of aggression in Ukraine, as the main driver. Yesterday, the price of the Brent variety, which is important for Europe, climbed to as much as $139 per barrel (159 liters). This was triggered by statements by US Secretary of State Antony Blinken, who suggested an import ban on Russian oil.
A number of other reasons are given for the current price spikes. The currently strong dollar against the euro is causing fuel prices to rise even further. After all, oil is traded in dollars, but German buyers have to pay their fuel bills in euros.
Diesel price increases with heating oil demand
Diesel is usually cheaper than petrol because the fuel is tax-privileged. According to ADAC, the disproportionately high increase in diesel prices can also be explained by the high demand for heating oil. Many private households then prefer to order their heating oil because they fear even higher prices.
According to ADAC, the tax difference in pricing is 20 to 21 cents per liter. An increase in the price of diesel is usual, especially in the fall, when consumers stock up on heating oil. In the long term, however, it is to be expected that the price of petrol will level off again above the price of diesel.
A number of importers are also reducing their imports from Russia, and oil companies are currently putting the brakes on sales. Due to the tense market situation, the Shell oil company has initially restricted the sale of heating oil, diesel and other products to some major customers in Germany. This emerges from a letter from Shell Germany yesterday, from which the dpa news agency quoted. In order to be able to continue to fulfill contractually promised obligations, one restricts the so-called spot sale – i.e. the current sale of oil, diesel and other products without prior agreements.
Discussion on oil embargo
In view of the escalation of the fighting in Ukraine, an end to the price spiral is unlikely to be in sight in the short term. The calls by some politicians for an oil and gas embargo on Russia should even tend to fuel prices further. Russia’s Deputy Prime Minister Alexander Nowak warned that oil prices would exceed $300 per barrel (159 liters) if the US and EU ban imports from Russia.
The federal government rejects such an embargo. Chancellor Olaf Scholz (SPD) said yesterday that Europe had deliberately excluded energy supplies from the sanctions against Russia because of the Ukraine war. “There is currently no other way of securing Europe’s supply of energy for heating, for mobility, for power supply and for industry.”
According to Scholz, if energy prices continue to rise, the traffic light government wants to adopt further measures to cushion the burden, especially for low earners.