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War drives fuel prices over two euros - next jump in sight


Tuesday, March 8, 3:11 p.m

War drives fuel prices over two euros - next jump in sight

Until recently, a fuel price of more than two euros was considered unlikely, but now it is a reality for the first time in the history of the Federal Republic. And it's already going up.

Munich. The war in Ukraine caused fuel prices to rise above the two-euro threshold for the first time. On a nationwide daily average on Monday, premium petrol of the E10 variety cost 2.008 euros per liter, with diesel it was 2.032 euros, as the ADAC announced on Tuesday in Munich. And that's probably not the end: The next strong increase was already apparent on Tuesday.

"We are currently observing another price surge," said ADAC fuel market expert Jürgen Albrecht. "On Tuesday afternoon, petrol was around 10 cents more expensive than on Monday, diesel as much as 12 cents. It is therefore to be feared that the daily average will also rise significantly. Since the price of oil and the dollar were relatively stable up to midday on Tuesday, they cannot be used as a justification for this drastic increase."

The main driver of the increase at the pump so far has been oil prices, which have shot up in the wake of the conflict in Ukraine. On Monday, the Brent variety, which is important for Europe, had meanwhile cost up to 139 dollars per barrel (159 liters), by the evening a large part of the price jump had melted away again. By Tuesday noon, oil prices had stabilized after the sharp rises of the previous days - albeit with an upward trend.

The currently strong dollar amplifies the effect of rising oil prices as oil is traded in dollars and German buyers pay in euros. In addition, the price of diesel will continue to be driven by high demand for the similar heating oil and importers will reduce imports of diesel from Russia.

The fact that such extreme fuel price records are currently being achieved is also due to the fact that the effect of the war in Ukraine is building on the record levels that have already been reached in recent months. The increase over the year is huge: on average in March 2021, diesel still cost 1.315 euros per liter, with Super E10 it was 1.454 euros.

The development is also driving the debate about relief. ADAC Transport President Gerhard Hillebrand called for additional help for consumers. "In the short term, the federal government should consider a temporary reduction in VAT on fuel and heating oil," he said. "These could have an immediate effect and achieve a broad relief effect." (ste/dpa)