Cost of fuel in Germany at all-time high

The cost of petrol and diesel in Germany has reached an all-time high, the ADAC motoring association said on Wednesday.

The previous day, E10 petrol cost €1.712 ($1.93) based on a nationwide daily average, breaking the previous record of €1.709 on Sept. 13, 2012, ADAC reported.

Diesel cost €1.640 per litre.

However, prices had been driven up by the oil market; the value of North Sea Brent recently exceeded $90 per barrel, its highest level in years.

The trend is driven by both economic and geopolitical factors.

Supply is scarce and demand high. Meanwhile, political tensions at the Russian-Ukrainian border were pushing up the risk premium for crude oil.

Russia is one of the world’s largest oil producers.

A new carbon pricing system that went into effect at the start of the year in Germany has also made fuel more expensive

However, ADAC said the difference is relatively small at about 1.5 cents per litre.

The surge in fuel prices follows record lows registered in 2020, when the COVID-19 pandemic first hit the world economy.