How long will the trend continue?

A strong euro and falling oil prices mean that fuel is cheap. It cannot be ruled out that filling up will become even cheaper in the future.

Munich – Fuel prices in Germany are currently at their lowest since the end of 2021. This is a remarkable development considering that prices rose to record highs in March 2022 due to the invasion of Ukraine by Russian forces. And diesel and gasoline prices could fall even further.

According to an analysis by the ADAC The prices for diesel and E10 have fallen considerably since then. On average, a liter of diesel recently cost 1,530 euros, E10 1,636 euros. You can quickly save yourself the trouble of comparing prices and making a detour to a cheaper gas station. In March 2022, the fuels quickly reached 2.40 euros per liter.

Stronger euro and subdued demand for oil caused diesel and petrol prices to fall at petrol stations

The strength of the euro is one of the main reasons for the falling prices at gas stations. Since oil, which is needed to produce fuel, is traded in dollars, it becomes cheaper for buyers outside the dollar zone when the dollar is weaker. The euro is currently well above the 1.11 US dollar mark.

The International Energy Agency (IEA) attributes the drop in fuel prices that has been ongoing since July to a dampened demand for crude oil on the world market. Experts believe that this is mainly due to China’s economic problems. Demand for oil falls when the economy weakens, which is currently the case due to an economic slowdown and a struggling real estate industry in the People’s Republic. China’s central bank has now responded to this with a package of measures.

OPEC countries want to lift the curb on oil production: oversupply and further falling fuel prices would be the result

The Organization of Petroleum Exporting Countries (OPEC) plans to gradually lift its self-imposed supply restrictions by September 2025. This could mean that fuel will remain relatively cheap in the future. However, Carsten Fritsch, a commodity expert at Commerzbank, expressed concerns about tagesschau.de: “Instead of expanding production, OPEC+ should actually consider further cutting production to prevent an oversupply on the market next year,” explained Fritsch.