Oversupply drops Germany's E5 gasoline prices

  • Market: Oil products
  • 27/05/24

The end of this year's maintenance season and a general oversupply are pushing down E5 gasoline prices in Germany. Meanwhile, dumping prices for diesel in the south and east are causing disruptions.

Traders are offering E5 gasoline at significantly lower prices at the end of May than in April. The prices in the past week, which were €4.60/100l lower than last month, have dropped because the maintenance season in Europe is largely over and refineries have resumed production. At the same time, imports are increasing.

Gasoline cargo imports from trading hub Amsterdam-Rotterdam-Antwerp to Germany steadily increased in recent weeks. German seaports received 8,500 b/d in May, according to data from Vortexa. German gasoline exports by cargo were down to 3,700 b/d.

At the same time, market participants in the south and east are struggling to understand the unusually large price differences in the respective regions. According to traders, some sellers have been offering diesel with free delivery since at least the end of 2023, with prices €4-6/100l below domestic price quotations and thus far below usual purchase prices. As a result, other traders cannot compete.

Furthermore, various customs offices have been made aware of this price discrepancy and asked to investigate, but a result is still pending, market participants said. The General Customs Directorate cannot not provide information on any ongoing investigations, it told Argus.

The companies that offer diesel so cheaply have only been active for a short time or were not previously active in the oil market. Two of them confirmed to Argus that they sell diesel below domestic price levels, but did not provide information on who exactly imports the goods to Germany and puts them on the market, meaning who is responsible for the energy tax, EBV contribution, CO2 levy and THG costs. It was just typical trading business, they said.


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