Is there a threat of a three-euro shock at petrol pumps soon? After record prices for gasoline and diesel, the gas station association is warning of further price increases and criticizing the actions of the oil companies. The federal government is also watching the development with great concern.
According to the gas station association in Germany, fuel prices of three euros will soon be possible. “We will have to deal with the fact that we are getting fuel prices around three euros,” said Herbert Rabl from the petrol station interest group (TIV) to the “Rheinische Post”. “And we already have them on the highways.” The expert criticized the actions of the oil companies. "People are cashing in. And the gas station operators also suffer from the high prices."
At the weekend, the price for a liter of E10 gasoline - the national daily average - reached a record of 2,273 euros, according to ADAC information. Diesel cost 2.404 euros and was only 4.3 cents away from its peak in April. According to a spokesman, the federal government is watching the price development for diesel and gasoline with great concern. The development is solely due to geopolitical factors. However, the worsening situation in the Middle East is not having a negative impact on Germany's supply of oil and gas, added a spokeswoman for the Federal Ministry of Economics. “Bottlenecks are not expected here at the moment,” she emphasized. Germany receives neither gas, LNG or oil via the route through the Bab al-Mandab Strait.
The gas station interest group also stated that the blockade of the Strait of Hormuz and the conflict with the Houthis over the Bab al-Mandab Strait were a problem. However, the share of oil in this country from the Gulf region is comparatively small. “Since fuel prices are currently being kept low in the USA, the companies have to earn money elsewhere,” explained association spokesman Rabl. "And that's with us, that's in Europe." At the same time, Rabl emphasized: "About half of what we pay at the gas station goes into the tax pocket." A noticeable reduction in prices can be achieved by reducing VAT.
A few days before the state elections in Mecklenburg-Western Pomerania, Prime Minister Manuela Schwesig is increasing the pressure for a fuel price cap in view of the increased gasoline prices. “The fuel prices can no longer go on like this. The commuter, the craftsman, the carer and the farmer can no longer do it,” said the SPD politician to the “Rheinische Post”. “The Chancellor cannot sit this issue out any longer. There must be a solution now,” demanded Schwesig. “The best thing would be to introduce a fuel price cap based on the Luxembourg model. It cannot be the case that “the corporations make record profits and that comes at the expense of drivers in Germany.”
Union parliamentary group vice-president Sepp Müller said that if price pressures continue, one should reassess what instruments could be used for possible relief. What is crucial, however, is "not to react to every short-term market movement with quick measures that ultimately fizzle out without any effect," Müller told the newspaper. “I am in discussions with our coalition partner and the Federal Ministry of Economics about suitable solutions.” He is watching the Houthi attacks on the energy infrastructure in Saudi Arabia with great concern. “It is impossible to predict at this point what lasting impact they will have on oil and therefore fuel prices in Germany.”
The CDU Economic Council spoke out against further government intervention. “Ever new fuel discounts or government price caps are not a solution,” said Secretary General Wolfgang Steiger. If competition at gas stations does not work, the Federal Cartel Office must act and exhaust its options. “We are currently not seeing any shortage of gasoline and diesel in Germany,” Steiger told the newspapers of the Funke media group. The crucial question now is whether the current prices at gas stations are the result of functioning competition. There was initially no comment from the cartel office.
Meanwhile, diplomatic efforts to resolve the crisis in the Middle East have suffered a setback. A planned meeting between Iran and Gulf states was postponed, while attacks on the region's key oil transport routes added to concerns about energy supply shortages. Crude oil prices rose by more than two percent on Monday to as much as $107 per barrel (159 liters). At the weekend, attacks by Yemen's Houthi rebels on Saudi Arabia led to the closure of an important, 1,200-kilometer-long east-west pipeline.
