The ongoing uncertainty in the Middle East drove up prices at gas stations further over the weekend. On Saturday, Super E10 cost a nationwide average of 2.27 euros per liter. According to data from the fuel price portal “Tankerkönig”, drivers had to pay just under 2.40 euros for diesel. Regionally and at certain times the prices were significantly higher.
The background for a particularly strong price jump on Saturday at 12 p.m. were reports that Saudi Arabia had to shut down an important pipeline following the Iranian blockade of the Strait of Hormuz and the increasing threat to the Bab al-Mandab Strait from the Houthi militia in Yemen. The east-west pipeline, which can carry large amounts of oil from the Persian Gulf to the Red Sea, was shut down as a precautionary measure after attacks on the line in the Riyadh and Medina regions. Additionally reduced Saudi exports could cause oil prices to rise further.
There was some relaxation in the price of fuel on Sunday, probably also because planned talks in Oman came into focus. Iran and Persian Gulf states plan to discuss the contested Strait of Hormuz on Monday. The foreign ministers from Iran, Iraq, Oman, Kuwait, Bahrain, Qatar, the United Arab Emirates and Saudi Arabia are expected to take part.
From the perspective of Brandenburg's Prime Minister Dietmar Woidke, the high fuel prices must be limited quickly. “We urgently need a fuel price cap,” said the SPD politician to the German Press Agency. “It cannot be the case that the oil companies are making extra profits while millions of commuters despair because fuel prices are far too high.” He emphasized: "No one should enrich themselves from the misery of others. Justice must also prevail at the gas station."
The head of government points to relief for consumers in other countries. "Our neighbors have been showing us for a long time how the population can be relieved at the pump. In Luxembourg, Poland, Belgium and the Czech Republic, the maximum prices are regularly adjusted flexibly to the market situation," said Woidke. “This promises falling fuel prices for all consumers and provides planning security.”
The Iran war has been driving up fuel prices for months. They had risen again in recent days due to higher oil prices. Fighting has intensified across the Middle East in the past two weeks. Brent crude oil is up almost 80 percent since the beginning of the year. The prices for European natural gas and freight rates for oil tankers have also risen sharply. Refined products such as diesel became even more expensive, exacerbated by the consequences of the war between Russia and Ukraine.
At the end of June, the fuel discount expired without replacement. Despite the 12 o'clock rule for price increases at gas stations, fuel prices are going up. There are more and more voices in the SPD calling for a limit. Federal Economics Minister Katherina Reiche (CDU) has so far rejected a cap on fuel prices.
In June, Brandenburg's Transport Minister Robert Crumbach (SPD) suggested that the federal government legally limit the price jump at midday to a maximum of five percent.
According to economist Monika Schnitzer, the military offensive in Yemen by the Iran-allied Houthi militia will lead to further rising consumer prices in Germany. Contrary to what was hoped, the situation is not easing, quite the opposite, Schnitzer told the “Kölner Stadt-Anzeiger”. “This will also have an impact on prices at the gas station and consumer prices overall and put a strain on all of us.”
At the same time, the chairwoman of the Advisory Council for the Assessment of Overall Economic Development warned against responding to the worsening situation in the Gulf with government relief. The best answer is not to call for new aid from the state, but rather for more independence from fossil fuels, said Schnitzer. Everyone can do their part the next time they buy a car or heating system.
