Fuel prices in July – Difference to crude oil price and regional price differences

On average, the prices of diesel, E5 and E10 decreased in July. While the prices of E5 and E10 amounted to 1.91 euros and 1.85 euros, respectively, on 1 July 2022, they dropped by around 10 cents to reach 1.81 euros and 1.75 euros on 1 August 2022. The price of diesel fell on average by 5 cents compared to early July, but is still significantly higher than the price of E5 (around 13 cents on 1 August 2022).

Andreas Mundt, President of the Bundeskartellamt: “Over the last few weeks the differences between the E5/E10 petrol station prices and the crude oil price have decreased substantially. However, they are still at a higher level than the differences observed in May. For diesel, the price difference is still above the high level of early June, i.e. the period immediately after the energy tax reduction.”

Regional price differences

When looking at the prices charged in different German regions, it can be noted that the differences between the cheaper and the more expensive regions have significantly increased as compared to the previous month.

In this comparison, a relatively high price level can be seen especially in Bavaria. On 1 August 2022, the average price of E5 and E10 in Bavaria was up to 1.94 and 1.88 respectively, whereas prices in cheaper regions were 21 cents lower. In the previous month the regional price differences for E5 and E10 still amounted to 8 and 11 cents on average.

As for diesel, the range of regional price differences increased from 11 cents (30 June 2022) to 19 cents (1 August 2022). While on 1 August 2022, the average price charged for diesel in comparatively cheap regions in northeast Germany was roughly 1.88, average prices in parts of Bavaria in some cases exceeded 2 euros.

Already in previous years similar changes in regional price differences could be observed, for example in 2018 when water levels in the River Rhine were very low during a period in which a refinery based in Bavaria was out of operation (see Annual Report of the Market Transparency Unit for Fuels (in German only), p. 12). Water levels in the Rhine, an important transport route, are currently also extremely low, which complicates the shipping of goods to Bavaria. In addition, according to reports from the industry, some refineries based in Bavaria and directly neighbouring countries (e.g. the OMV refinery in Schwechat, Austria) are currently unable to make full use of their production capacities due to downtimes and technical problems.


Sector inquiry into refineries and the wholesale level

In May 2022, the Bundeskartellamt launched an ad-hoc sector inquiry focusing on refineries and the wholesale level.

Andreas Mundt: “We are taking a particularly close look at the market structure, the cost structures and the companies’ actual profit margins. In a first step we gathered extensive data, information and documents from around 20 companies which are active in the German refinery sector. We are now in the process of evaluating these data."

The Bundeskartellamt may conduct a sector inquiry in a specific economic sector if particular circumstances suggest that competition in Germany might be restricted or distorted. It should be noted that sector inquiries are not proceedings against specific companies.

Such large-scale inquiries generally require a significant investment of time and effort, but they provide a comprehensive insight into the sector in question. First results of the sector inquiry into refineries and the wholesale level will be presented in an interim report to be published in autumn.