Germany shows first signs of road fuel demand recovery

Some retail service station suppliers in Germany are reporting an increase in fuel demand from motorists this week, following the easing of restrictions brought in to combat the spread of Covid-19. A rise in inland road fuel prices also points to increased consumption.

Demand is up by as much as 10pc compared with last week, according to some road fuel suppliers in the German inland market. The majority of retail station suppliers surveyed by Argus today have yet to see a change, but many expect an increase over the coming two weeks. The restart of some school classes and reopening of small shops on 4 May will add to car use.

Average inland diesel wholesale prices in Germany rose by €1.30/100l ($16.60/t) against Amsterdam-Rotterdam-Antwerp (ARA) barges yesterday to a premium of almost €11/100l, the widest since 30 March. E5 gasoline prices also rose by €1.30/100l ($18.60/t), compared with ARA Eurobob barge prices, to a premium of over €6/100l. The wider diesel premium reflects the fact that inland diesel demand has fallen by less than gasoline consumption.

Biofuel blending and other costs incurred to reach Germany's greenhouse gas reduction quota have helped to widen the premium of inland road fuel prices to ARA this year.

By Charlotte Blum