Fuel Price Drop: Diesel now sells for a penny less, according to ADAC
In a welcome development, the price of diesel in Germany has seen a small decrease, according to the automobile association ADAC. The current average price of a liter of diesel now stands at 1.605 euros, a decrease of one cent compared to last week.
The decrease in diesel prices can be attributed to several factors, including an increase in OPEC+ production and a stronger euro. The US economy appears to be cooling down, which could weaken the US dollar and strengthen the euro. Additionally, the OPEC+ countries have agreed to increase their daily production quota from September.
However, the gasoline price in Germany remains largely unchanged, despite a significant decrease in the crude oil price. This is due to factors beyond the raw oil cost, including taxes, refining costs, distribution, and retail margins. Changes in crude oil prices do not instantly translate to retail gasoline prices due to market dynamics, contractual lags, and regional economic policies.
As a result, the current price of a liter of Super E10 gasoline remains unchanged at 1.668 euros. Interestingly, the price of diesel is currently 6.3 cents higher than the price of Super E10 gasoline. The ADAC estimates that fuel is still significantly overpriced, with a small gap of only 6.3 cents between diesel and Super E10 prices.
The ADAC's "ADAC Drive" app can help with this, as it allows users to view and compare current prices at more than 14,000 gas stations in Germany 24/7. Thrifty drivers are advised by the ADAC to fill up in the evenings, as prices are on average 13 cents per liter lower than in the morning.
It is also recommended to avoid highway gas stations, where prices are on average more than 40 cents per liter higher than non-highway stations. The current average difference in price between highway and non-highway gas stations is more than 40 cents per liter.
In summary, while diesel prices have decreased slightly, gasoline prices in Germany remain steady. The retail price of gasoline reflects complex layers of tax, processing, and distribution costs in addition to crude oil costs. As a result, the retail price remains almost steady despite a substantial fall in crude oil prices. The ADAC's "ADAC Drive" app can help drivers save money by providing 24/7 access to current fuel prices at more than 14,000 gas stations in Germany.
The strong euro, caused by the potential US economic downturn, and the increased OPEC+ production may influence a drop in the prices of fuels in other industries. However, it seems that the retail price of energy, specifically Super E10 gasoline, remains stable despite these factors due to additional costs like taxes, refining, distribution, and retail margins.
