German fuel prices rise with new GHG quota, CO2 levy

: Oil products
25/01/06

Prices for road fuels and heating oil in Germany rose at the start of the year as a result of an increased greenhouse gas (GHG) quota and CO2 levy, as well as higher Ice gasoil futures. Many filling stations are replenishing stocks, and low temperatures have led to more heating oil orders.

German wholesale prices for heating oil, diesel, and gasoline increased because of a 1.25 percentage point increase in the GHG quota and a €10/t CO2 increase in the CO2 levy, which came in on 1 January. The increase in heating oil was €4.94/100l, in diesel €6.79/100l, and in gasoline €5.36/100l. Heating oil is excluded from Germany's GHG mandate.

This price rise roughly matches Argus' estimates from December. But higher Ice gasoil futures since the turn of the year led to a bigger price increase than originally expected. Lower gasoil imports from east of Suez into the Amsterdam-Rotterdam-Antwerp (ARA) hub in December are lending support to futures.

Heating oil consumer stocks are on average 57pc full nationwide, but more was ordered in the first week of the new year than many traders had expected. Traders reported deal volumes of nearly 13,000m³ on January 2, the highest for a day since 15 December. One reason for this is the cold weather that has hit many regions in Germany, another is the price increase at the beginning of the year, which has boosted buying interest.

Many market sources said diesel demand will only begin to pick up from the second half of January. Many wholesalers had sufficiently stocked up in December in expectation of the increased GHG quota and CO2 levy. Diesel stocks of commercial consumers were at a 12-month high of just under 59pc on 1 January, according to Argus MDX data.

But stockbuilding towards the end of 2024 does not seem to have had a dampening effect on demand from filling stations. These are being resupplied since 2 January, and daily diesel amounts reported to Argus on that day were the highest since 19 December.

Ship owners on the Rhine river said business will not fully resume until the second week of the year, and they expect January to remain quiet because of wholesalers' high diesel stocks. Importers' anticipated restocking with biodiesel will also not initially lead to price pressure, as the Rhine is deep enough for transit.

By Johannes Guhlke

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Pemex road fuel inventories down in March

25/04/15

Pemex road fuel inventories down in March

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IEA slashes 2025 global refinery runs growth forecast

25/04/15

IEA slashes 2025 global refinery runs growth forecast

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Funding cuts could delay US river lock work: Correction

25/04/14

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IMO GHG pricing not yet Paris deal-aligned: EU

25/04/14

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