The escalation of the Iran war is driving up oil prices and causing noticeable increases at German gas stations. Diesel now costs an average of 2.04 euros per liter, gasoline 1.94 euros. Politicians are calling for government interventions against rising fuel costs.
Oil prices have seen a sharp rise due to the Iran war. On Friday, a barrel of US crude surged up to 14 percent, the strongest gain since May 2020. The North Sea Brent variety climbed up to 10.8 percent to nearly 95 dollars, as last seen in September 2023. Within a week, prices rose 30 percent, with Brent oil at just under 90 dollars on Friday afternoon, up more than 20 percent weekly.
At German gas pumps, the effects are evident: On Thursday, the average diesel price was 2.04 euros per liter, a 17 percent increase since the escalation. Super E10 cost 1.94 euros, up 9 percent. Within a week, diesel rose almost 30 cents per liter. “The effects of the escalation in the Middle East are now clearly visible at German gas stations,” said Steffen Bock, managing director of clever-tanken.de, to the RedaktionsNetzwerk Deutschland.
Gas prices also increased: At the TTF exchange, they rose 4 percent to nearly 53 euros per megawatt hour, 17 percent higher than the previous winter. The ADAC criticizes “inappropriate pricing,” as storage tanks are still filled with cheaper oil. Since Sunday, there has been a rush at gas stations, further driving prices up.
Germany's gas station market is dominated by an oligopoly: Aral, Shell, Esso, Total, and Jet control about 80 percent. The Bundeskartellamt observes mutual price adjustments leading to fluctuations of up to 13 cents per liter in 24 hours. Federal Economics Minister Katherina Reiche (CDU) wants an investigation by the cartel office. “We will check that a situation is not being exploited that is reflected in the markets but not to this extent,” she said.
Politicians are responding: Bremen's head of government Andreas Bovenschulte (SPD) calls for an excess profit tax, Saxony-Anhalt's prime minister Sven Schulze (CDU) demands “reaction mechanisms.” BSW chairwoman Amira Mohamed Ali seeks a 20 percent cut in energy tax and suspension of the CO2 tax. “Germany now needs an effective fuel price brake to quickly end the rip-off at gas stations,” she said. Cartel chief Andreas Mundt warns that geopolitical price surges cannot be stopped easily.
