Fuel shock in Germany. Gasoline prices there are the fastest in the EU

Fuel prices in Germany are rising faster than in most European Union countries, with the exception of Finland, the website of the “Die Zeit” newspaper wrote on Tuesday. On Monday and Tuesday, the prices of the cheapest E10 petrol exceeded EUR 2 per liter – this is the highest since May 2022.

Higher fuel prices are related to the war between the US and Israel against Iran, which has been ongoing since February 28. Since the beginning of the conflict, raw material prices have been rising, which translates into more expensive fuel at stations.

According to “Die Zeit” the increase in gasoline prices in Germany was twice as high as the EU average. Of the 27 EU countries, only Finland saw a greater increase. In other large economies – France, Belgium and the Netherlands – the pace of increases was lower – it was emphasized.

The problem of oligopoly. Five companies control the market

As “Die Zeit” pointed out, the rapid increase in fuel prices in Germany is not primarily due to higher taxes. The newspaper rather points to a special situation on the refining and wholesale markets, while margins at gas stations remain relatively stable. It was pointed out that the German fuel market is dominated by five large concerns that simultaneously control refineries, wholesale trade and station networks. According to the newspaper, the industry operates in a non-transparent way, and the interconnections between companies make it difficult for new, independent suppliers to enter.

According to the daily, such uThe arrangement does not necessarily mean illegal price collusionj, but rather a typical oligopoly problem. Companies do not have to enter into formal agreements to behave like a cartel, which is why antitrust proceedings often turn out to be insufficient, wrote Die Zeit.

Lesson from 2022. Tax cuts won't help?

There is an ongoing discussion in Germany about reducing fuel prices, but – according to the newspaper – this would not be a lasting solution. The newspaper reminds experience from 2022, when the temporary reduction cost the state approximately EUR 3.4 billion. According to various estimates, part of this amount did not go to drivers, but was taken over by the oil sector in the form of higher margins.

According to data from the German automobile club ADAC, on Monday the average daily price of super E10 gasoline across the country exceeded 2 euros per liter, an increase of about 26 cents since the beginning of the war with Iran. Meanwhile, the price of diesel increased by approximately 43 cents to EUR 2.17 per liter.

High prices also remained on Tuesday. In the morning, a liter of E10 cost on average EUR 2.09 and diesel – EUR 2.23.

Will historical records be broken?

The dpa agency pointed out that fuel prices in Germany are currently close to the level of the first months after the Russian invasion of Ukraine in 2022, but still remain below the records from that period. The historic peak in diesel prices was recorded on March 10, 2022 – EUR 2.32 per liter, and E10 petrol prices four days later – EUR 2.20.

From Munich Iwona Weidmann (PAP)

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