Oil prices are falling, but fuel remains on a record course - criticism of oil multinationals is growing: "Make the big bargain"

Created: 03/15/2022, 16:21

By: Michelle Brey

Fuel prices in Germany are immensely high as a result of the Ukraine war.

© Franziska Kraufmann/dpa

The price of oil has almost fallen back to its pre-Ukrainian war level.

But fuel prices are largely unimpressed.

Now the criticism is growing. 

Munich - The fuel prices in Germany are above the 2-euro mark.

Prices have skyrocketed since the start of the Ukraine war.

With oil prices now falling, the situation should actually ease up.

But the still extremely high price level for fuel is causing criticism of the mineral oil companies.

Oil prices almost at pre-Ukraine war level - why aren't fuel prices falling?

Oil and gas prices normally move relatively in step, but for now they are largely decoupled (as of March 15).

On Tuesday afternoon, the price of Brent oil, which is important in Europe, fell below $100 per barrel (159 liters) and approached pre-war levels in Ukraine.

It had surged above $130 by early last week (March 7) following the escalation of the Ukraine conflict and the Russian attack.

At the peak, a value of 139.13 dollars was even reached for a short time.

Since then, however, the price has fallen sharply again.

When it comes to fuel, however, nothing is noticeable.

On the contrary: both premium petrol of the E10 grade and diesel have become more expensive than cheaper during the phase of the oil price decline.

Fuel prices in Germany (as of March 14)

Super E10 cost 2.203 euros per liter on a nationwide daily average on Monday, as the ADAC announced on Tuesday.

That's 0.4 cents more than the day before and almost an all-time high.

Diesel rose 0.2 cents to 2.307, down 1.4 cents from last week's record.

Ukraine war: high fuel prices despite falling oil prices?

- Criticism of "oil multinationals" is growing

"My impression is that a few oil multinationals are making big money right now," wrote Baden-Württemberg Finance Minister Danyal Bayaz (Bündnis 90/Die Grünen) on Twitter on Tuesday.

He should speak to the soul of many motorists.

Because super petrol is around 45 cents more expensive than before the Russian war of aggression in Ukraine, diesel even around 64 cents.

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The ADAC also emphasizes this discrepancy.

"Despite all the war-related special effects and explanations for the high fuel prices - the additional driver's money gets stuck somewhere between oil production and gas stations," says fuel market expert Jürgen Albrecht.

"The mineral oil companies are currently making really good money in the refinery business."

Ukraine war: Mineral oil companies criticized - "Earn significantly more money than before"

The trade association Fuels and Energy (en2x) made a similar statement.

A spokesman told the

: "The refineries are currently making significantly more money than before." On Tuesday, the association referred to higher demand with a simultaneous decrease in supply.

The higher prices for fuels from domestic refineries or abroad are "an indicator of a product shortage, which in this case applies to Europe and worldwide".

Jürgen Ziegner, managing director of the petrol station association ZTG, also sees this shortage as a result of the Ukraine war.

Particularly in the case of diesel and similar products, less is produced in Germany than is consumed.

A relevant part of the import has so far come from Russia, but many traders are already anticipating a possible import ban.

As a result, fuel is becoming scarcer and therefore more expensive.

There is also fear and speculation.

And it cannot be ruled out that some companies will try to invest some fat in order to be prepared for falling prices.

The gas stations themselves, on the other hand, have little opportunity to set prices.

Meanwhile, politicians want to react to the high price level of fuel.

The proposal by Federal Finance Minister Christian Lindner for a tank discount has drawn enormous criticism from several quarters.