Fuel prices, difference to crude oil price and regional differences

When the tax reduction first became effective, the prices of E5 and E10 initially decreased on average by 27 cents and the price of diesel by 11 cents. Since then, the prices have increased again by approximately 6-8 cents.

• E5 on 1 June 2022: 1.94 euros and on 9 June 2022: 2.00 euros (nationwide average)
• E10 on 1 June 2022: 1.88 euros and on 9 June 2022: 1.94 euros (nationwide average)
• Diesel on 1 June 2022: 1.93 euros and on 9 June 2022: 2.01 euros (nationwide average)

Andreas Mundt, President of the Bundeskartellamt: “We are doing what we can to achieve clarity and transparency regarding the price-setting of oil companies. However, neither the Bundeskartellamt nor any other authority in Germany can simply enforce price reductions. We are determined to prosecute any illegal conduct we may detect during our monitoring activities.”

Difference to the crude oil price

Since the beginning of the war in Ukraine the crude oil prices and the sales prices of refineries and the prices charged by petrol stations have diverged significantly. The Bundeskartellamt has therefore initiated an investigation into refineries and wholesalers.

Andreas Mundt: “Since the war began we have been seeing a much greater divergence between refinery prices and prices charged by petrol stations compared to the crude oil price unlike in previous years. This divergence has even increased since 1 June. Excluding the tax reduction, the prices at petrol stations have increased more than the crude oil price since late May. This of course raises questions.”

While the average difference between the prices charged by petrol stations for E5 excluding taxes and the crude oil price was never higher than 40 cents between 2021 and February 2022, it has fluctuated between 40 and 50 cents since the beginning of the war in Ukraine and thus reached a considerably higher level. The difference has further increased to approximately 60 cents since 27 May.

Andreas Mundt: “The growing difference shows why we have to look into the refinery level in more detail. We want to know why refinery and petrol station prices rose at times although the crude oil price did not increase to the same extent. To clarify if and to what extent other factors like increased production costs could be part of the explanation, we have already initiated an investigation into the mineral oil sector. As this requires extensive investigation work, it will take some time before we can publish the results.”

Regional differences

When the energy tax was reduced, the speed at which prices decreased varied from one region to another. Initially, prices tended to decrease less in the south than in other parts of the country. Conceivable reasons include logistical challenges linked to the adjustment, regional cost effects overlapping the tax reduction or different competition conditions.