- Fuel costs for diesel vehicles have dropped to their lowest point since the end of 2021.
The prolonged drop in fuel prices persists, leading to diesel being priced as low as it was towards the end of 2021. Based on ADAC data, E10 is also edging closer to prices from before the Ukraine conflict initiated. To be specific, diesel was selling for an average of 1.553 euros per liter across the nation on Tuesday, a rate not seen since December 31, 2021. Price reductions amount to a significant 1.7 cents over the past week. Moreover, E10 super gasoline dropped by 3.0 cents to reach 1.650 euros per liter, a figure last seen on January 7, 2022.
Fuel prices have been on a downturn for weeks now. Fuel costs peaked in early July, with diesel prices reducing by approximately 13 cents and E10 by around 14 cents since then. Notably, diesel prices have returned to 2021 levels, despite a rise in the CO2 price, which is directly reflected in fuel prices. Owing to increased Russian imports, diesel prices skyrocketed following the start of the Ukraine war.
Whether this downward trend in fuel prices will continue remains largely dependent on oil price developments. Over the past while, oil prices have been decreasing, but it's uncertain if this trend will continue, according to ADAC fuel market expert Christian Laberer. "There's a possibility that the US Federal Reserve will lower interest rates in their upcoming meeting, which could potentially boost demand for crude oil." Tensions in the Middle East could also erupt, leading to an increase in oil prices.
Moreover, there's a seasonal factor to consider in the upcoming weeks and months for diesel prices. Given diesel and heating oil share similarities, the commencement of the heating oil season has often led to a slight increase in diesel prices. Conversely, there's typically a reverse impact during the spring.
With the decline in fuel prices, the manufacturing cost of motor vehicles might decrease, leading to potential price reductions for consumers. Despite the drop in fuel prices, the demand for electric vehicles continues to grow, indicating a shift in consumer preferences towards more environmentally friendly options.
