Fuel costs experience a slight decrease for gasoline, while diesel continues to be expensive
In a recent evaluation, the Automobile Club of Germany (ADAC) has determined that while petrol prices may be appropriate, diesel prices remain high. The organisation considers diesel prices in Germany to be significantly overpriced, despite a slight decrease in July.
The current diesel price of €1.615 per liter, as reported by the ADAC on Tuesday, is still elevated compared to the average price of Super E10 fuel, which decreased by 0.5 cents to 1.668 euros per liter. This discrepancy between petrol and diesel prices is a consistent finding in the ADAC's evaluations.
The high diesel prices can be attributed to several factors. Diesel prices recently plateaued near record high levels around €1.50 per liter across the EU, with Germany seeing similar elevated prices. The price of Brent crude oil remains high, and a rise by $5 per barrel can lead to further fuel price increases.
Additionally, the weaker euro against other currencies increases the cost of imported oil and fuels. Furthermore, rising natural gas and related additives, such as AdBlue, used in diesel vehicles to reduce emissions, contribute to cost pressures.
Moreover, reduced blending rates of biodiesel in Germany could also impact overall fuel costs. This factor, along with global oil markets and currency exchange rates, keeps diesel prices elevated beyond what might be expected from supply and demand alone.
The ADAC's assessment of diesel prices as overpriced is consistent with their previous evaluations. Despite a slight decrease in July, the organisation deems diesel prices still too high due to these underlying cost pressures.
As of Wednesday, the latest evaluation by the ADAC was published, reaffirming their stance on the overpriced nature of diesel in Germany. The Brent crude oil futures were at around 72 US dollars per barrel, an increase of three dollars compared to the previous week, which could potentially lead to further fuel price increases in the future.
[1] Source: [Industry Analysis] [2] Source: [ADAC Evaluation] [3] Source: [Additional Analysis]
- The price discrepancy between diesel and Super E10 fuels suggests that the diesel industry in Germany is operating with higher costs, compared to the petrol finance sector [2].
- The elevated diesel prices can be linked to a combination of factors within the energy sector, such as high crude oil prices, imported oil costs due to currency exchange rates, and the rising prices of natural gas and AdBlue [3].
