Key facts
- German prices for heating oil, diesel, and gasoline fell to their lowest since the US-Israel-Iran conflict.
- Lower Ice gasoil futures values were the primary driver of the price decline.
- A temporary reduction in energy tax lowered wholesale diesel prices.
- Demand for heating oil and diesel declined as consumers anticipated further price drops.
- Rising fuel demand is expected this week due to the upcoming expiration of the tax reduction.
German prices for heating oil, diesel, and gasoline have fallen to their lowest point since the beginning of the US-Israel-Iran conflict, with domestic spot demand for heating oil and diesel declining over the past week. The primary factor behind this price decrease was a significant drop in Ice gasoil futures values, following the announcement of a framework agreement to end the war between Iran and the US on June 14.
The wholesale price for diesel loaded by truck in Germany has returned to pre-war levels, partly due to a temporary reduction in energy tax that lowers prices by €14.04 per 100 liters until the end of June. However, prices for German greenhouse gas (GHG) reduction obligations have risen, partially offsetting the decline in domestic wholesale fuel prices.