The average price of Super E10 petrol, the most widely used type of petrol in Germany, rose to €2.273 per liter nationwide on Sunday, reaching an all-time high. The price was 1.7 cents higher than Friday’s level.
Diesel prices rose faster
The average price of diesel rose by 3.5 cents over the weekend to €2.404 per liter. Fuel prices have risen significantly, particularly over the past two weeks.
Compared with prices on August 30, Super E10 petrol was about 12 cents cheaper, while diesel was about 20 cents cheaper.
Oil supply risks affected prices
The deepening crisis and reciprocal reprisals in the Middle East caused crude oil prices to begin the new week higher. A meeting of foreign ministers planned in Oman to resolve the crisis in the Strait of Hormuz between the Gulf states and Iran was postponed at the last minute.
Saudi Arabia’s East-West oil pipeline was also temporarily shut down following drone attacks. After the development put 4% of global oil supplies at risk, the price of Brent crude approached $108 per barrel.
Record-low water levels in Germany’s Rhine River emerged as a domestic factor disrupting tanker transport and increasing shipping costs.
No new fuel tax cut planned
Rising prices have increased expectations of new financial support or tax cuts for drivers. The German government, however, announced that no new fuel tax cut was planned.
A previous fuel tax cut that provided relief of 16.7 cents per liter had cost the budget approximately €1.6 billion. The government, which is running a budget deficit because of extensive investment and defense packages financed through borrowing, is not inclined to introduce another tax cut.
Germany’s August inflation rate also rose again to 2.9%, driven by increases in energy and raw material prices.
