November 29, 2021

German diesel prices climb to all-time high amid European energy crunch

The price of diesel at German filling stations hit €1.555 per liter on Sunday, exceeding the previous all-time high of €1.554 recorded in August 2012, Europe’s largest motoring association reported.

According to the ADAC, the latest surge is mainly attributable to rising crude prices as global economies recover from the Covid-19 slump. At the same time, the stronger dollar has weighed on prices as crude-oil contracts are settled in the US currency.

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The Munich-based alliance noted that the highest gasoline price to date was registered at €1.709 on September 13, 2012. The current price for crude is lower than nine years ago with the Brent contract hovering around $84, but the dollar is significantly stronger than it was back in 2012, which makes oil imports to Europe more expensive.

When it comes to diesel, the price increase is also due to high demand for heating oil, which is typical for the upcoming cold season. Moreover, the carbon dioxide price of €25 per ton has resulted in an additional surcharge of around six to eight cent per liter since the beginning of the year.

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Earlier, German Transport Minister Andreas Scheuer called on the country’s government to prepare short-term countermeasures. They include tax cuts if energy and fuel prices keep spiking in order to ease the burden on cash-strapped households. 

Germans living in border areas have reportedly rushed to the neighboring Czech Republic to fill up their tanks at lower prices.

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Article source: https://www.rt.com/business/537766-germany-diesel-price-energy-crunch/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

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