Fuel costs continuously decrease, reaching levels not seen in almost three years for diesel.
After several weeks of dropping fuel prices, diesel is now as inexpensive as it was at the end of 2021 — prior to Russia's invasion of Ukraine and the increase in CO2 costs. However, a potential seasonal influence might soon reverse this trend.
As per data from ADAC, the common price of diesel on Tuesday was 1.553 euros per liter, which was last observed on December 31, 2021. Weekly, the price decreased by 1.7 cents. Super gasoline of the E10 variety dropped by 3.0 cents to 1.650 euros per liter, a level last seen on January 7, 2022.
Since reaching their high points in early July, both diesel and E10 prices have dropped significantly. Diesel is approximately 13 cents cheaper, while E10 is around 14 cents cheaper. The fact that diesel has now returned to a 2021 level is remarkable due to the subsequent rise in CO2 costs, which is reflected in the price of diesel by a few cents per liter. Moreover, diesel prices surged substantially following the commencement of the Ukraine war, as it was predominantly imported from Russia.
Whether the low fuel prices will persist relies significantly on the evolution of the oil price, which typically fuels changes in fuel prices. Oil prices have recently reduced, but whether this trend will continue remains uncertain, according to ADAC fuel market expert Christian Laberer. "It is possible that the US Federal Reserve will lower interest rates in an upcoming meeting, which could boost crude oil demand once again." Tensions in the Middle East could also escalate and raise the oil price.
There is also a seasonal effect that could impact diesel in the foreseeable future. Given that diesel and heating oil are nearly identical, the beginning of the heating oil season has frequently acted as a minor price influencer for diesel. On the other hand, in the spring, a counteracting effect typically occurs.
Due to the significant drop in diesel prices, many vehicle owners with diesel engines are enjoying savings at the pump. In fact, the price of diesel has fallen to levels not seen since the end of 2021, making it as affordable as it was before the Russia-Ukraine conflict and subsequent CO2 cost increases.
