Fuel prices have soared to a new all-time high amid the escalating tensions in the Middle East. According to the ADAC, the average price for Super E10 gasoline across Germany on Sunday was €2.273 per liter, surpassing the previous record set in March 2022. Diesel prices also increased significantly, reaching €2.404 per liter.
The primary driver behind this surge is the continuously worsening security situation in the Middle East, which caused a marked increase in the oil price over the weekend. On Monday morning, at approximately 10 a.m. German time, a barrel of Brent crude traded at $108.30, a 3.6 per cent rise compared to the close of the previous trading day.
The gasoline association suggests that a reduction in prices at the pump is unlikely in the near future. According to the Tankstellenverband, a price of €3.00 per liter could soon become possible. Herbert Rabl, a spokesperson for the interest group, stated in the “Rheinische Post,” that they must prepare for the possibility of fuel reaching €3.00 per liter, adding that similar high prices are already seen on highways.
Rabl strongly criticised the behaviour of the oil conglomerates, calling it blatant profiteering, noting that even fuel station operators are suffering due to these high costs. While he acknowledged that blockades of the Strait of Hormuz and the conflict with the Houthis near Bab al-Mandab are serious issues, he pointed out that the proportion of oil consumed domestically from the Gulf region is relatively small. Given that fuel prices are being held low in the United States, he argued that the companies must be making their profits elsewhere-specifically in Europe and Germany.
Furthermore, Rabl highlighted that “approximately half of what we pay at the gas station goes into the tax pot.” He suggested that a noticeable price decrease could be achieved by lowering the value-added tax (VAT). He noted that Switzerland already operates with a lower tax rate of only seven per cent, meaning that fuel and mobility are taxed similarly to essential items like food, drink, bread, and butter.
