German Fuel Prices Finally Fall, Gasoline Drops Sharply While Diesel Eases

German fuel prices falling as oil drops, Digi Mart USA News (Germany): Fuel prices in Germany are falling, and motorists are finally seeing the change at the pump after months of rising costs. According to the ADAC automobile club, a liter of Super E10 gasoline nationally averaged just 1.991 euros, while diesel cost 2.236 euros.

Since November 1, gasoline has become 8.1 cents per liter cheaper, which the ADAC calculates as 4.05 euros in savings on a 50-liter tank. Diesel has fallen 4.6 cents per liter, or 2.30 euros on a 50-liter fill.

The decline follows a sharp energy price spike linked to the war with Iran, which made energy supplies scarce worldwide. The price of a barrel of North Sea Brent crude briefly reached 117 dollars, but since early November it has fallen to around 92 dollars.

An ADAC spokesperson said the recent drop in crude oil prices is largely attributable to the U.S. midterm elections.

The spokesperson added that the market remains highly volatile, but the generally lower crude price level should allow further price reductions.

Energy remains significantly more expensive than before the Iran war. Fuel prices rose 28.9 percent in October compared with the previous year, and heating oil rose 84.5 percent.

A fuel tax rebate has been in effect again since October 1 through the end of the year, lowering fuel prices by up to 17 cents per liter, and it pushed Germany’s overall inflation down to 2.8 percent.

Diesel prices remain the most elevated, according to the ADAC, which told BILD there is still room for price cuts. The club noted the so-called “rocket and feather” effect, in which fuel prices rise quickly when oil rises but fall slowly when it declines.

Diesel remains especially expensive partly because of Germany’s dependence on imports, and winter heating oil demand also pushes prices up. ING chief economist Carsten Brzeski told BILD that gasoline prices should ease further and fairly quickly.

He said that if oil fell to 80 dollars, diesel could drop to just under two euros per liter and super gasoline to around 1.80 euros per liter.