For the first time since the start of the conflict involving Iran, fuel prices have decreased on a daily basis. On Wednesday, the nationwide average price for Super E10 gasoline was 2.011 euros per liter – 3.4 cents less than on Tuesday. Diesel fuel cost 2.134 euros per liter (down 5.4 cents). Despite this relief, filling up remains expensive: E10 is currently around 23 cents, and diesel nearly 39 cents per liter more expensive than before the attacks in the Middle East began on February 28.
Oil Price as a Key Driver
The raw oil market has been a central driver of price developments in recent weeks. The conflict impacts the Strait of Hormus, a critical transport route for crude oil and liquid gas. Concerns about supply bottlenecks drove up prices, which then translated to higher prices at the pump.
Why Diesel Prices Fluctuate More
Diesel typically reacts more strongly than gasoline during times of crisis given that Germany imports a significant amount of diesel and the fuel is in high demand not only for transportation but also for industry. Diesel is even sometimes used as a substitute for gas.
Whether the price decrease will continue is uncertain. The German government is also planning to limit fuel stations to increasing their prices only once per day.
Frequently Asked Questions
What caused the initial price increases?
The conflict involving Iran and concerns about disruptions to oil supplies through the Strait of Hormus drove up the price of crude oil, which in turn increased fuel prices.
Is diesel always more affected by crises than gasoline?
Yes, diesel typically reacts more strongly to crises because Germany imports a large amount of diesel, and it is used extensively in both transportation, and industry.
What steps are being taken to address the high prices?
The International Energy Agency is releasing strategic oil reserves, and the German government is considering measures to limit how often fuel stations can raise prices.
As fuel prices remain sensitive to international events, how might shifts in the conflict involving Iran impact your transportation and household budgets in the coming weeks?
