The fact that diesel cars are so widespread in Germany is also due to the fact that the fuel was significantly cheaper than premium petrol for decades. It’s been different for a few months now. The tank discount has contributed to this development. But there are other reasons.
Even before the end of the tank discount tomorrow, fuel prices at the gas stations are rising again significantly. Demand is high, gas station operators report. Many motorists want to fill up their tanks again before the Treasury hits them again with the full energy tax. Some even bring extra canisters to fill. At the same time, the offer is limited. According to the industry, low water on the shipping routes, congestion on the railways and the partial failure of a refinery in Austria are hampering replenishment. In addition, the price of oil has risen again recently and the euro has fallen against the dollar.
However, none of this can explain the phenomenon, which is unfamiliar to German motorists, that the price of diesel has been far higher than that of premium petrol for some time. A liter of diesel currently costs an average of 2.08 euros at German filling stations, which is almost as much as it was before the tank discount came into effect and 24 cents more than a liter of Super. Premium petrol, on the other hand, is currently almost 40 cents cheaper at 1.84 cents than it was just before the tank discount.
On the one hand, taxation contributes to these different developments. Before the tank discount came into effect, an energy tax of 65.45 cents per liter was levied on petrol, but only 47.04 cents on diesel. With this diesel privilege, Germany has been promoting the sale of diesel fuel and the corresponding cars for decades. This controversial unequal treatment was largely compensated for in the tank discount. The energy tax was reduced by almost 30 cents for petrol and just under 14 cents for diesel. It is therefore to be expected that after the end of the tank discount, the price of petrol will jump more than the price of diesel and the unusual, current price difference will shrink significantly.
The price ratio of significantly cheaper diesel compared to the Super, which has been accustomed for decades, will probably not return. Because there are other factors that influence diesel and petrol prices differently. The ratio of the production of different types of fuel and other products from a given quantity of crude oil in a refinery can only be changed to a limited extent. In Germany and Europe, we consume significantly more diesel in relation to the Super than the refining process allows. In the past, this difference was largely covered by imports from Russia. They have largely disappeared in recent months and are difficult to replace.
In addition, diesel is not only in demand at petrol stations. From the refinery’s point of view, the product is largely identical to heating oil (however, fueling diesel cars with heating oil is prohibited and is harmful to the engine), which is why the price developments are closely related. And the price of heating oil has recently climbed to almost a record level again. In view of the current energy crisis, owners of oil heating systems appear to be filling their tanks earlier and more heavily this year than in the past. In addition, industry is trying to replace gas with oil for heat generation wherever possible.
