Fuel prices in Germany reached an all-time high

According to the statement made by the German Automobile Club (ADAC), the liter price of Super E10 type gasoline, the most widely used in the country, reached an all-time high yesterday, with an average of 2,273 euros across the country.

This level recorded on Sunday corresponded to 1.7 cents above Friday's prices.

Sharp rise in diesel prices

There was a much faster increase in diesel prices compared to gasoline. The average liter price of diesel, which increased by 3.5 cents at the weekend, was 2,404 euros as of Sunday.

Fuel prices have risen rapidly, especially in the last 2 weeks. ADAC data revealed that on August 30, E10 gasoline was 12 cents cheaper than Sunday's price, while diesel was about 20 cents cheaper.

Geopolitical crises and logistics disruptions fuel prices

Crude oil, the most important determinant of pump prices, started the new week with a sharp rise due to the deepening crisis in the Middle East and mutual retaliation.

The last minute postponement of the foreign ministers' meeting planned to be held today in Oman between the Gulf countries and Iran to resolve the crisis in the Strait of Hormuz increased the diplomatic deadlock and geopolitical risk premium in the markets.

In addition to the diplomatic crisis, the critical East-West oil pipeline of Saudi Arabia, the world's largest oil exporter, was temporarily closed following drone attacks. With this development, which puts 4 percent of the global oil supply at risk, the barrel price of Brent oil approached 108 dollars.

In addition to global geopolitical risks, the record low water level in the Rhine River within Germany was another main local factor that disrupted tanker transportation in the domestic market and increased transportation costs.

The government is not keen on a new support package

Although high fuel prices raise the expectation of a new financial support or tax reduction for drivers in the country, the German government announced that a new "fuel discount" is not planned.

The cost of the previously implemented fuel discount, which provided a relief of 16.7 cents per liter, to the budget was approximately 1.6 billion euros.

It has been stated that the German government, which has a budget deficit due to comprehensive investment and defense packages financed by borrowing, is not currently keen on a new tax cut.

As the increase in energy and raw material prices was reflected in the markets, the August inflation rate in Germany increased again and reached 2.9 percent.